Britain's main political parties have been urged to back a radical plan to introduce a single tax rate of 22 per cent on all income.

A right of centre grouping called the New Party has said such systems have been successfully introduced in several eastern European nations including Russia.

The party is not fielding any candidates in the general election but is instead seeking to encourage policy debate.

It was also presenting a demand to the Scottish parliament on Tuesday calling for an immediate three per cent reduction in taxes north of the border.

According to the New Party, a flat rate tax would benefit the low paid as the 10 million poorest taxpayers would escape the tax net altogether, instead of paying nine per cent of their income as at present.

The party also argues that the rich would end up paying a higher proportion of tax because of the removal of incentives for tax evasion and avoidance.

Costs

A flat rate tax of 22 per cent with a tax-free personal allowance of £12,000 would cost about £50bn per year.

"When you take into account the potential £12bn of savings from abolishing minor tax reliefs, this comes to roughly the £35 billion of administrative waste identified by the [Conservative Party's] James review," said a policy document.

The reforms are achievable, insists the party, ending the "ridiculous situation" of those on the minimum wage paying tax.

"This is not a tax break for the rich; those on below-average earnings would see their after-tax income increase by over 12 per cent, while the average benefit for the top third of earners is barely 0.5 per cent," it added.

Bureaucracy

New Party economist Dr Nigel Knight insisted a flat tax system could work in the UK.

"Flat tax sits well with the New Party philosophy of stripping out needless and harmful bureaucracy," he said.

"It also addresses the serious problem created by the latest stealth taxes by ensuring that taxation will once again be based on the ability to pay.

"The poor pay less and the rich pay more and everyone is happy - hard to believe perhaps, but the proof is there to be seen."

DNA screening

The New Party was founded in 2003 in Scotland by a group of businessmen, with the stated aim of offering a "sane, progressive and intelligent alternative to the existing parties".

Its policies are generally business-friendly, anti-devolution, individualist and eurosceptic.

The party is also calling for a review of Britain's commitments under the Kyoto protocol and backs the introduction of DNA screening for immigrants.