Laws gives another signal on 50p
Peter Hoskin 10:57am
Usually, the task of David Laws Watch is to judge just how close the former minister is
to a return to government. But, today, his article for the FT is worth highlighting for a different
reason altogether. Referencing George Osborne's signals on the 50p rate in the Budget speech, Laws has this
to say (my emphasis):
It's no secret that Laws supports the abolition of the 50p rate. He said as much back in January. But, as far as I can recall, this is the first time that a coalitioneer has put the Treasury's suspicions about its revenue-raising prospects into article form. Even with Laws' proviso that action should wait until the second half of this parliament, you can chalk this one up as another sign of the government's hardening resolve against the rate."The chancellor also signalled that excessive marginal rates of income tax – of 50 per cent, even 60 per cent – are on their way out. The Treasury believes that the majority of expected revenue from the current top rate is lost in avoidance. But the government is rightly cautious about the timing of the removal of these high rates: this cannot be our highest priority when those on low incomes are facing a real squeeze.It will therefore be sensible to delay the removal of the 50 per cent rate until the second half of the parliament."
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Commentator
March 24th, 2011 11:20am Report this commentYadayadayada. Typical politicians. They promise what they have no intention of delivering and they imply what they have no intention of promising. As they all live on tax-free expenses, because they have written the tax rules to suit themselves, they all earn well in excess of £150,000 but do not pay the 50% rate. None of this cynical hint-dropping should deter those thinking about leaving the UK from doing so nor should it encourage those having second thoughts to come here in the first place.
Frank P
March 24th, 2011 11:57am Report this comment"Coalitioneer" Pete?? I'm jealous - wish I'd coined that! What a wonderful addition to the lexicon of cockney rhyming slang.
Fiona
March 24th, 2011 12:58pm Report this commentYes we all know how keen he is to abolish the 50p tax rate. We also keep hearing that he is about to return to the Cabinet, any day now, hang on, in a minute or two, just a moment...nearly...
When will the report of the Parliamentary Standards Commissioner into Laws' conduct be completed and published? It seems to be taking a very long time.
Raffles
March 24th, 2011 3:20pm Report this commentFrank P - nice dart sir.
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