Chancellor Alistair Darling intends to take more from the UK's highest earners, which will include many in the financial services industry, to fund a package of tax cuts including a temporary reduction in VAT.
According to reports over the weekend, Darling will announce plans for a new 45% tax rate for those earning more than £150,000 a year to be introduced at the next election in 2011. This will help him pay for around £16bn of tax cuts which will include the first cut in VAT for 34 years from 17.5% to 15% for a year. Darling hopes this will get people spending again in the run up to Christmas. However, economists are concerned that in order to pay for the package, the Government will announce borrowing will soar to £117bn in the next two years. The Conservatives warn this will mean taxes w...
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