Chancellor hopes to secure cut in 50p tax rate
George Osborne is pushing the Liberal Democrats to accept a cut in the top rate of income tax from 50p to 40p in next week's Budget.
Mr Osborne is keen to abolish the top rate – brought in under Labour – as a sign to business that the Tories will not penalise "wealth creators". But he realises that in return other taxation measures targeting the wealthy will have to be brought in – possibly the Liberal Democrats' "tycoon tax" – to avoid Labour's charge that the Government is the protector of the super-rich. David Cameron and Nick Clegg, alongside Mr Osborne and Danny Alexander, are due to speak by phone today about the Budget and a final meeting is scheduled for Monday.
No final decisions have yet been taken but the Liberal Democrats acknowledge they will not try to block the 50p reduction. Instead their strategy is to extract as many concessions as possible from the Tories for the move.
A study for the Treasury is expected to show the 50p rate is bringing in hundreds of millions, rather than billions, of pounds.
- 1 What happens to your body when you give up sugar?
- 2 Ed Miliband less influential than One Direction's Louis Tomlinson in official Doncaster power list
- 3 Japanese island overrun with cats after population explodes
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
Bubonic plague-carrying fleas found on New York City rats
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
£14600 - £18000 per annum: Recruitment Genius: Established in 2003 the company...
£20000 - £25000 per annum: Recruitment Genius: This fast growing, Google certi...
£18000 - £23000 per annum + OTE: SThree: SThree are a global FTSE 250 business...
£18000 - £22000 per annum: Recruitment Genius: This company has won the award ...