Osborne Refuses To Rule Out Top-Rate Tax Cut

Written By Unknown on Minggu, 05 April 2015 | 23.39

Chancellor George Osborne has repeatedly refused to rule out a tax cut for Britain's highest earners if the Conservatives win the election.

Mr Osborne told Sky News' Murnaghan programme his party had "no plans" to further reduce the top rate of tax and insisted it was not a priority.

Prime Minister David Cameron also said: "It's not our policy, it's not our plan."

But Labour claim the Chancellor has been "flushed out", pointing out Mr Osborne had used the same words about VAT before the last election, which he then raised from 17.5% to 20%.

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The opposition has promised to bring back the 50p rate for those earning upwards of £150,000, claiming the cut to 45p had benefited the wealthiest by at least £85,000.

Pressed on whether top earners could be in line for another tax cut, Mr Osborne said: "You can judge us by what we say we want to do.

"And what we want to do is increase the tax-free personal allowance to £12,500 so people full-time on the minimum wage don't have to pay income tax and millions are better off.

"And when it comes to higher rate taxpayers our priority is increasing the threshold at which you pay that higher rate, the 40p rate, to £50,000.

"Those are our big tax commitments for the coming parliament."

Tackled repeatedly over whether the top rate could be cut further, Mr Osborne said: "If that was our priority or our plan we would have made it part of our plan and made it one of our priorities.

"I am telling you what our priority is. We have made a big tax-cutting priority and that's what we are absolutely 100% focused on delivering and achieving.

"Not because it's a nice thing to have but because its central to our economic plan and making work pay."

But Labour's Chris Leslie told Murnaghan this was the same argument previously used by Mr Osborne on VAT, which he had then increased in office.

Mr Leslie said: "That's the same formula he had before the last General Election when he said we have no plans on VAT and of course they did it.

"Their priority is always about helping the very richest in society."

But Mr Leslie's reference to "fairer tax changes" in tackling the deficit has caused critics to claim Labour is planning more tax rises.

The clash over tax is just the latest between the two main parties as the General Election campaign gets into full swing.

In recent weeks, Mr Cameron ruled out an increase in VAT while Labour committed not to increase National Insurance in the face of attacks by the respective sides.

Speaking on Murnaghan, Mr Osborne also warned "an unholy alliance" between the Labour and the SNP after the election would risk the future of the UK and its economy.

The party's leader Nicola Sturgeon has offered to help Ed Miliband "lock David Cameron out of Downing Street" as she sought to bat away disputed claims she had told the French ambassador she would prefer a Tory win in May.

Mr Osborne said: "The fact that the Labour Party, that was a party that campaigned for the Union in the referendum, is contemplating an arrangement with the SNP, who want to break up the country, is deeply disturbing.

"People know that Ed Miliband is weak, that the Scottish nationalist leaders are much stronger than he is and we know who would be running that government.

"That would be bad for the entire United Kingdom, bad for the integrity of the Union but also bad for our economy because it would mean higher debts and higher taxes."

But Mr Leslie said Labour had ruled out a coalition with the Scottish nationalists.

"The SNP and the Conservatives, I think, are playing political games with the country's future," he said.


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