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George Osborne cuts 50p top tax rate

London, UK (23/03/2012)

George Osborne is cutting the tax rate for earnings over £150,000, saying in his Budget it raised "next to nothing".

He is also going to raise the threshold at which people start paying tax to £9,205, leaving millions of working people over £200 better off.

But 4.4 million pensioners will be worse off next year when age-related tax allowances are frozen and axed.

Mr Osborne said the Budget "rewards work" but Labour Leader Ed Miliband labelled it a "millionaire's Budget".

BBC political editor Nick Robinson said the chancellor had taken a huge gamble with changes that might not shape the economy, but would shape politics in the months ahead.

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