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Press watch: ‘Osborne poised to slash top tax rate’

printer Mail

‘George Osborne is poised to slash the top rate of income tax from 50p to 40p in next week's budget in a dramatic move that will delight business and the Tory right, but risks reinforcing the Conservatives' reputation as protectors of the super-rich.

‘With the four senior ministers in the budget discussions due to speak on Friday and a final meeting scheduled for Monday, the Liberal Democrats appear to recognise that they are not going to be able to block what is Osborne's key demand for the budget, but are trying to maximise the concessions they can extract in return.’

The Guardian, 16 March 2012

‘The Liberal Democrats have dropped their opposition to scrapping the 50p top rate of tax and offered the Conservatives a Budget deal that would cut taxes for the highest earners.

‘Government sources last night said that Nick Clegg, the Deputy Prime Minister, was prepared to accept the end of the 50p tax rate in exchange for tax cuts on low earners and tighter tax rules.

‘However, sources close to George Osborne, the Chancellor, described as “wild speculation” reports that the Conservatives have decided to accept the offer and scrap the top rate of income tax.’

Daily Telegraph, 16 March 2012