France cuts tax breaks for rich

President Francois Hollande’s government has announced cuts in tax breaks for rich households as part of a plan to reduce the huge cost of France’s generous family benefits system.

It has stopped short of cutting allowances outright for high-earning families, as some officials had wanted. Instead, it is reducing income tax exemptions wealthy parents can claim according to the number of the children they have.

The Socialist government aims to save €2 billion (£1.7bn)annually from 2016 with belt-tightening measures, though some new spending means the net savings will be €1.7bn.