Boris Johnson: Cut NI and scrap 50p tax rate

Boris Johnson has called on the Chancellor to cut National Insurance (NI) and scrap the 50p higher income tax rate.

Speaking to the Telegraph after figures showed economic growth slowed during the second quarter, The Mayor of London urged George Osborne to take action.

He said: "You've got to look at ways of stimulating growth now, and certainly I think you should look at National Insurance. You should look at ways of stimulating consumption confidence in the market."

Johnson added the abolition of the 50p rate would be "a signal that London is open for business", pointing out the city was having to compete against capitals with much lower tax rates.

Yesterday, the Office for National Statistics revealed GDP growth was just 0.2% in Q2, down from 0.5% for the first three months of the year.

In April, employees' NI contributions rose from 11% to 12%, while the 50p income tax rate applies to earnings above £150,000.