Budget: Lord Lawson on cutting tax rate to raise money

A former chancellor has claimed cutting the top tax rate would bring in more money for the government, and if he was in charge today, he would lower it to 40% again.

Lord Lawson recalled cutting the top rate in 1988 and how it brought in "more money from the rich".

He also explained how he tried to bring in changes over taxing women in the 1980s but then-Prime Minister Margaret Thatcher would not agree to his proposals.

Former Trade Minister Lord Jones also joined in the debate as they looked ahead to the options for George Osborne in next Wednesday's Budget.

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