The Tory government is considering lowering the top rate of tax for Britain’s super-rich, it has been reported.
The move would see the top rate of tax being lowered from 45p to 40p in the pound (£), while hammering low-income families with £12bn in welfare cuts.
Former Tory Chancellor, Lord Lawson, has urged George Osborne to reduce the tax burden on top-rate tax payers in the ’emergency budget’ next month (July).
George Osborne has indicated during Treasury meetings that he may go ahead with the plan. It would encourage more businesses to invest in the UK, says Lord Lawson.
Lord Lawson told the Financial Times: “I would strongly support this. It would significantly enhance the attractiveness of the UK as a place to do business, at no cost in terms of lost revenue.”
“That was the experience when I brought the top rate down to 40% in 1988 and it’s even more relevant today”.
The government has also failed to rule out slashing benefits for disabled people.