News

The 45p tax rate is the "right place to be", according to Chief Secretary to the Treasury, Danny Alexander.

My Alexander has said any cuts to the top rate of income tax before next year's general election will only happen "over my dead body". He said that the current 45p rate will remain in place at least until the election in 2015.

A cut has is called for by some senior Tories and there are suggestions of a forthcoming Conservative proposal to cut the top rate to 40p after Mr Cameron, when questioned, refused to rule the possibility out.

Mr Cameron has said that Britain’s wealthiest are paying more tax under the coalition than under the previous Labour government.

Meanwhile, Labour has recently pledged to raise the top rate to 50p if it wins the next election

London Mayor, Boris Johnson, who is calling for a tax cut, says that the UK tax rate is currently higher than in competitor countries, whilst UK income tax is now higher than the EU average.

He said that a tax cut should still happen and that he sees no reason why the tax rate shouldn’t be brought down.

Mr Alexander had recently been criticised with claims that he has ‘gone native’ at the Treasury.

Speaking to BBC Radio 4's Today about Mr Alexander’s comments, Mr Johnson added: "The last thing I want to see is pointless sacrifice from the Liberal Democrats, let alone the dead body of Danny Alexander.”