Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Willetts wants to keep top tax rate

James Tapsfield
Saturday 27 August 2011 11:26 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A Tory minister has called for the 50p top rate of tax to be kept amid a simmering coalition row on the issue.

Universities Minister David Willetts said the levy on the highest earners sent an important message that society was "in it together" while "times are tough".

The intervention puts Mr Willetts at odds with some of his senior Conservative colleagues, and suggests that divisions over the future of the top rate do not run purely along party lines.

Chancellor George Osborne has indicated that he believes the rate - which applies to income over £150,000 - should be scrapped if it is not raising significant revenue.

However, the Liberal Democrat Chief Secretary to the Treasury, Danny Alexander, has dismissed the idea of dropping it as "cloud cuckoo land".

A potential compromise of replacing the levy with a "mansion tax" has also come under fire from Tories.

In an interview with The Times, Mr Willetts said he regarded the top rate as an important symbol.

"It is very important that people see that when times are tough, we are, as they say, all in it together," he said. "That is an argument. Whilst times are as tough as they are at the moment, people see that there are higher rates of tax being borne.

"We need (details) about how much tax it is raising and all that, but that (symbolic fairness) is why we have kept it so far.

"Because when you are expecting sacrifices from people with modest earnings, it's right that that can apply to people on high incomes as well." PA

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in