Chancellor denies saying middle classes like paying 40p tax rate

Conservative MPs have said the Chancellor made the remarks at a secret meeting at his Downing Street office, the contents of which have been leaked to The Mail on Sunday. The disclosure came as Mr Osborne is poised to announce a Budget boost for the low-paid by raising the threshold for income tax to £10,500, while rejecting pleas to stop more middle earners being dragged into the 40p tax band. MPs at the meeting reacted with horror when Osborne told them: "Let's not forget there are advantages in more people paying tax at 40p. It means they feel they are a success and joining the asp...