Chancellor unveils 50% tax rate for top earners

April 22, 2009 at 2:13 pm Leave a comment

The Chancellor of the Exchequer has announced a 50% rate of income tax for people earning more than £150,000. The rise will come into effect next year.

Alastair Darling’s Budget statement was delivered to the Commons this afternoon.

He spoke for just under an hour, and outlined how the government will deal with the worst economic crisis to hit the British economy in a generation.

Mr Darling told MPs that the economy will shrink 3.5% this year and borrowing would reach £175bn.

He announced a 2% rise in alochol duty, to come into force at midnight, and a 2% rise in tobacco taxes, to come into force at 6pm today. There will also be a rise in petrol duty in September.

The Chancellor said that the economy will grow by 1.25% next year and 3.5% from 2011.

VAT will return from 15% to 17.5% by the end of this year.

Click here for more details of the Budget.

Tory leader David Cameron told the House:

“As of today, any claim they (the government) have ever made to economic competence is dead, over, finished.”

Lib Dem leader Nick Clegg said the Chancellor had missed an opportunity to reform the tax system and “put money into people’s pockets to help them make it through this recession.

“Taxes are still too heavy on those who can least afford it and too easy to avoid for those who know how.

“That’s how this government and the Tories seem to want it.”

MPs will discuss the Budget today, tomorrow and next Monday and Tuesday.


Entry filed under: Commons. Tags: , , , .

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