British voters expect budget for rich

As Britain’s chancellor, George Osborne, prepares to deliver his third budget speech today, a poll shows half of voters expect him to reward the rich rather than the poor.

Mr Osborne has insisted that the bulk of measures will be targeted at working people on low and middle incomes, but reports suggest he will slash the 50p top rate of income tax on earners over £150,000 (€180,525).

Just 17% of voters questioned by Ipsos Mori expected those earning the least to reap the most benefits, while 50% believed the wealthy will come out best.

The predicted cut in the 50p rate to 45p or even 40p has been warmly welcomed by some Conservative MPs, who believe it is a deterrent to enterprise and may not even be raising any money.

It remained unclear whether any easing in the income tax burden on the super-rich will be matched by a tycoon tax or mansion tax of the kind advocated by Liberal Democrats.

Their deputy leader Simon Hughes has signalled the junior coalition partners want a budget “for the millions not the millionaires”.

Mr Osborne may accelerate plans to raise the threshold for income tax. It is due to rise by £630 to £8,105 on Apr 6 and reach £10,000 by 2015.

He is expected to accelerate moves to introduce local pay deals for public sector workers to reflect the wide variation in the cost of living across Britain.

He will announce a crackdown on stamp duty avoidance on expensive homes.

Taxpayers are to be given new personal statements spelling out exactly how much of their income is paid to the state and what it is being spent on.

— Press Association