Scrapping 40p rate could be ‘iconic’ Tory pledge

income tax 40pConservatives must look into scrapping the 40p higher rate of income tax to win voters, a number 10 policy adviser Nadhim Zahawi says.

A member of the Number 10 Policy Board, Nadhim Zahawi said that the moment has arrived for the Conservative Party to carry out a “serious debate” regarding their income tax policy .

On the other hand David Cameron on Wednesday terminated requests to rise the threshold for paying the 40p rate in upcoming week’s Budget , stating that his objective is going to be offering tax breaks to lower earners .

Twenty-five years ago, when the then Nigel Lawson, the former Tory Chancellor, first introduced the 40 per cent band, only one person in 20 paid the higher rate. Today, one in six people pays the 40 per cent rate.

Mr Cameron on Wednesday defended the government’s focus on increasing the tax free threshold.

Mr Zahawi said that the cuts are unlikely to be announced in Budget next week and cautioned against a “knee jerk, panicked reaction”. I think it’s a healthy debate for us to have, although I think it was right that we stick to what the Prime Minister and Chancellor have said, that if there is any money it should go to the lower end of the spectrum.

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