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Budget 2012 - 50p to 45p cut

The Chancellor has announced a slash in the top rate of income tax from 50p to 45p.

Undoing the measure introduced by the Labour government that saw the top rate rise from 40p to 50p for those earning over £150,000 will be cut to 45p.

The amount is expected to tumble to 40p in 2013 with the 45p figure seen as a compromise to placate those on the hard right of the Conservative party looking for tax cuts for those that fall into the top 1% of earners.

At a time of rising austerity it is likely to be seen as the most controversial measure in the 2012 Budget however the Chancellor insists his other measure will increase the amount of tax paid by high-earners.

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