The 50p tax rate imposed on the UK's highest earners 'will undermine UK competiveness at a crucial time', says the Centre for Policy Studies. Based on research that the think tank conducted, the CPS said the Chancellor's aim to collect £2.4bn in revenue through the tax is 'nugatory' in comparison to government borrowing requirements of £175bn. The research warns that the UK's 50p measure is the highest tax rate of those jurisdictions in the G8 and will therefore 'put us at the bottom of the international competitiveness league for high earners'. In addition, the CPS said that the new taxation rate will threaten any likelihood of recovery for the economy as high earners will find greater incentives to move abroad rather than being charged the high UK tax rate. Commenting on the study, Jill Kirby, spokeswoman for the CPS said: 'In his Mansion House speech last week, the chancellor hinted that he will take further steps to penalise the better off. But it is time to recognise the long term damage that this political manoeuvring will do to the British economy.'