Budget 2012: Keeping 50p tax rate not a primary concern for Lib Dems

THE Liberal Democrats are not committed to “hanging on” to the 50p tax rate, as long as the richest end up paying more overall.

Simon Hughes, the party’s deputy leader, said today that individual tax rates were not a “central aspect” of the budget on Wednesday for the party.

It comes amid days of intense speculation Chancellor George Osborne will cut the levy to 45p next year and abolish the top rate completely by the time of the next election.

Mr Hughes said the party’s manifesto committed them to lifting people out of tax at the bottom by closing loopholes at the top.

“We didn’t say hanging on to 50p tax rates or having a top tax rate at anything else, we made it very clear that the wealthy have to pay more,” he told BBC Radio 4’s World at One programme.

He added: “The 50 pence tax rate brings in a relatively small amount of money.

“My test on Wednesday afternoon when the Chancellor sits down will be whether the people on high incomes are paying more or paying less to help us out of the economic mess from the Labour Party.”

He added: “The whole priority is to make sure we have a budget for the millions not the millionaires. A particular tax rate which affects one in 100 people who pay tax in Britain is not, therefore, for us a central aspect for the Budget.”

Earlier, Labour leader Ed Miliband accused the Government of being more interested in cutting taxes for the rich.

He said: “We would be concentrating on jobs and growth and we would be using every penny of scarce resources in order to help millions of hard-pressed families who are struggling to make ends meet.

“My fear is the Government is more interested in cutting taxes for people earning more than £150,000 a year.”