The Prime Minister and Chancellor have held final meetings with Deputy Prime Minister Nick Clegg and Treasury Chief Secretary Danny Alexander to finalise the Budget.
Footage of the meeting of the ‘quad’ was released this afternoon amid reports that the Chancellor will scrap the 50p top rate of tax from next year and replace it with a new 45p rate.
George Osborne hopes the new rate, which will take effect from April 2013, will raise more money and encourage growth and investment.
By 2015 the Chancellor hopes to remove the higher rate altogether, according to reports.
It is thought Lib Dem anger over the plan will be assuaged with a new “tycoon tax” intended to crack down on tax avoidance.
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