CHris Philp, the chief secretary of the treasury, has defended the government’s decision to scrap the top 45p income tax rate.
When asked why it was necessary to make the move now, he told Sky News: “The top rate of now 40 percent, down from 45, makes us internationally competitive, it puts us on a par with a number of other economies. .”
When told that the 45p decision only benefits the wealthy, he admitted it does: “Well, that’s true, it benefits people who make more than £150,000, but very often that’s people who being internationally mobile, they can choose where to settle.
“I’m talking to people who have the choice of whether they work and live in London or Edinburgh or Birmingham or whether they’re going to live in Singapore or New York or elsewhere. We want those people to settle here in the UK.
“Another point, in terms of the size of that measure, it was less than 1/20th, less than five percent of the total fiscal measures. It was a very small part of the package.”