Chancellor of the Exchequer George Osborne
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Budget: Osborne cuts 50p top tax rate

George Osborne has announced cuts to the top rate of income tax - and an increase in the amount of money people can earn before they start paying tax.

But 4.4m pensioners will be worse off next year as a result of age-related tax allowances being frozen and axed.

The chancellor said the 50p rate was uncompetitive, raised "next to nothing" and would fall to 45p next year. Other measures would raise more, he said.

Labour's Ed Miliband said millionaires would get a "massive income tax cut".

Gary O'Donoghue reports.

  • 21 Mar 2012
  • From the section UK