Government abandons plan to scrap 50p tax rate

The coalition government is to abandon plans to scrap the 50p top rate of tax despite rising pressure from business leaders.

The Prime Minister and George Osborne fear they will be accused of pandering to the wealthy if they scrap the rate, reports the Telegraph. Business leaders and economists have put pessure on the coalition to abandon the 50p rate in recent months, arguing doing so will stimulate the economy. But a report being prepared for the Chancellor by HMRC is expected to show a "surge" in revenues totalling hundreds of millions of pounds from the first year - undermining the economic case for scrapping the levy. Last year, more than 30 business leaders wrote to the Telegraph arguing the remova...