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− | + | George Osborne is considering cutting the 50p top rate of income tax in next week's Budget, the BBC understands. | |
− | + | Prime Minister David Cameron will discuss the Budget with the chancellor and other senior ministers on Friday. | |
− | + | There is speculation the tax on earnings over �150,000 could be reduced to a 45p rate or scrapped entirely in return for tax cuts for low earners. | |
− | + | Labour leader Ed Miliband said it was the "wrong priority" and money should be spent on jobs for young people. | |
− | + | The coalition's "quad" of top ministers, Conservatives Mr Cameron and Mr Osborne and Lib Dems Nick Clegg and Danny Alexander are discussing the Budget by telephone on Friday. | |
+ | Temporary tax | ||
− | + | All budget decisions will have been made by the end of Friday so that the details can be sent to the Office for Budget Responsibility. | |
− | + | The government-appointed body will use these tax and spending decisions to make its economic forecasts. | |
+ | Continue reading the main story | ||
+ | �Start Quote | ||
+ | For a chancellor sometimes likened to a submarine - George Osborne has never been timid about deploying a torpedo� | ||
+ | image of Ben Wright Ben Wright Political correspondent, BBC News | ||
− | + | Is Osborne planning a 50p tax surprise? | |
+ | The 50% income tax rate was introduced by the previous Labour government in 2010, to help pay for declining government revenues during the recession. | ||
− | + | Mr Osborne has always said it was a temporary measure and has asked officials to assess how much extra it is raising. |