George Osborne's plans to scrap the 50p tax rate from 2013 could cost the Treasury billions of pounds, accountants have warned on the eve of the 2012 Budget.
The Chancellor's plans to scrap the 50p tax rate from 2013 could cost the Treasury billions of pounds of revenues as top earners delay income until the rate is reduced, accountants have warned.
George Osborne should "accelerate" plans to scrap the 50p higher rate of income tax and increase personal tax allowances to help the economy during the euro crisis, business leaders will warn the Chancellor.
Cutting the 50p top rate of tax does not go far enough and risks leaving the Exchequer out of pocket in the short term, business lobby groups and accountants warned.
Deputy Prime Minister Nick Clegg has warned that he could block any move to abolish the 50p tax rate on earnings over £150,000.
Lord Nigel Lawson, former Conservative Chancellor, has warned it is "dangerous" and "foolish" to keep the 50p top rate of income tax, urging George Osborne to scrap the levy soon.
George Osborne is hoping to scrap the 50p top rate of tax in his Budget in 2013, on the back of evidence that new higher rate does not make money for the Exchequer.
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