It was suggested that I write a letter to the London Evening Standard yesterday in response to their support for Alastair Darling's comments on private equity in the FT, on which I blogged. I was happy to meet the request that I do so. This is what got published today:

You leader on private equity misses the key point (4 July) It's not true that private equity is "capitalism in its purest form" as you suggest. Because of the very low tax rates this sector of the market enjoys it has a wholly unjustified market advantage. If taxpayers' funds were being used to support an ailing industry, many in the City would be calling for an end of state support for that enterprise - as would the European Commission, under state aid rules that prevent unfair competition.

Private equity funds' tax avoidance amounts to an innovative but abusive form of state aid, which undermines the credibility of all markets, but especially the viability of the City of London where a level playing field is essential. Alistair Darling and all those who contend that private equity is a good thing need to rexamine the activity in this light.

Richard Murphy, Director Tax Research LLP

Some 200 or so word comments are more successful than others. Let's just say the lines from Westminster to my quiet corner of Norfolk have been a lot hotter than usual since this rolled onto the streets a few hours ago.