Chancellor urged to cut income tax in 2016 Budget
Chancellor George Osborne has been urged to cut income tax rates in the forthcoming 2016 Budget.
Contrary to some official predictions, an additional £8 billion was raised for the Exchequer in 2013/14 as a result of cuts to the top rate of tax, Mr Osborne revealed. This is thought to be due to fewer individuals seeking to avoid the lower tax rate.
Speaking in the House of Commons, the Chancellor cited HM Revenue and Customs (HMRC) data to suggest that the decision to cut the top rate of income tax from 50p to 45p in 2013 has resulted in a significant increase in tax revenue.
Welcoming the news, Conservative MPs urged the Government to make additional cuts to income tax for middle-class workers, calling for the Chancellor to offer these workers a break in his upcoming Budget speech.
David Davis, Conservative MP, said: ‘The people who have carried the biggest burden of increased taxes since 2008 have been middle income Britain.
‘It is time they got a break. If he is finding money they should be up there.
‘What this demonstrates is… what we argued at the time – when you cut higher rates of tax you get a greater return for the public purse.’
However, Labour leader Jeremy Corbyn has opposed the proposal, calling for the higher 50p income tax rate to be restored.