Plans to scrap 50p rate are abandoned January 2012
Posted date: 9 January 2012
Plans to abolish the 50p Income Tax rate have been ditched as the result of mounting political pressure, reports have revealed.
The Prime Minister and Chancellor have decided that the additional rate will not be scrapped until at least 2015. They concluded that it would be politically impossible and would lead to accusations of pandering to the wealthy if they did so, according to the Daily Telegraph.
The news comes ahead of HM Revenue & Customs report on the returns generated by the levy. The findings, due out at the end of January, are expected to show that millions of pounds have been raised in the first year alone.
Business leaders and backbench members of the Conservative party have been putting pressure on David Cameron to remove the tax, claiming that it is damaging the economy and putting off investors.
The decision to hold off from abolishing the tax for another three years reflects the state of public sector pay, which will be capped at one per cent following the current freeze.
Speaking on the Andrew Marr Show about the rate, the Prime Minister said: “When you’re taking the country through difficult times and difficult decisions, you’ve got to take the country with you. That means permanently trying to make the argument that what you’re doing is fair and seen to be fair.”
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