50p tax rate

Pressure is growing from influential Conservatives outside the coalition over a reduction to the 50p top tax rate.

Currently those earning over £150,000 a year pay 50p in the pound, which many business leaders have warned is making the UK's economy uncompetitive.

Former chancellor Norman Lamont added his voice to that of London mayor Boris Johnson in calls for a tax cut to help stimulate the economy.

However this is being opposed by senior Liberal Democrats such as chief secretary to the Treasury Danny Alexander who accused those who want a 50p cut of living in "cloud cuckoo land".

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