LABOUR should raise the top rate of income tax to 65 per cent if it takes power next week, respected economist Howard Reed urged yesterday. 

The party has already pledged to raise taxes on Britain’s richest from 45 per cent to 50 per cent in its first budget. 

But in a new policy paper for think tank Class, Mr Reed said that any “progressive government” should eventually tax earnings over £250,000 at 65 per cent.