Osborne planning middle-class tax giveaway
George Osborne is set to slash income tax for middle-earners in next week’s Budget. The chancellor is looking to raise the threshold for the 40p rate, following a similar move last year which benefitted 130,000 people. The higher rate now kicks in at £42,385 and will rise to £43,000 from next month. Senior government sources say the chancellor wants to "accelerate progress" towards his target of £50,000 in 2020. Mr Osborne is also said to be examining whether he can afford to cut the top rate of tax from 45p in the pound to 40p, after statistics showed the tax-take went up by £8bn a year when it was cut from 50p to 45p.
Source: The Sunday Times (06/03/2016)