Laws gives another signal on 50p

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):

“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.”

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.