ANY CUT in the top rate of income tax has been dismissed out of hand by the Liberal Deomcrats' most senior Treasury minister.
Danny Alexander claimed the current 45% rate was "the right place to be", and moves to slash the rate further would be made "over my dead body".
The Liberal Democrats had initially opposed the cut from 50% to 45%, although the party leadership was agreed in return for the bigger than scheduled rise in the amount people can earn before paying income tax.
No cut to the rate has yet been put forward, but senior Conservatives, including mayor of London Boris Johnson, have expressed a desire to lower the rate closer to 40%.
"Sooner or later there will have to be a new Conservative manifesto and I can't believe we are going to go into an election on a manifesto to keep our tax rates higher than our competitor countries."
Johnson was responding to an interview given by chief secretary to the Treasury Alexander to the Mirror, in which he said: "I wouldn't go to cutting below 45%. I would say that would happen over my dead body. It's clearer and simpler and better to say we are going to stick where we are. We have the 45p rate and that's the right place to be."
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.