Conservatives hint at 50p tax change

Date: 1st October 2009

David Cameron believes that the government's plans to impose a 50p income tax rate on people earning over £150,000 a year are "fantastically bad".

In a new interview with the Spectator magazine, the Conservative leader hinted that he could abolish the reform if it proved counterproductive over time.

Chancellor of the exchequer Alistair Darling originally proposed the taxation increase in his April 2009 Budget speech.

Currently, Britain's richest people face an income tax rate of 40p.

The government has argued that increased tax revenues resulting from the change will help to improve the public finances.

A £175 billion deficit is forecast to be run up this year, due to the credit crunch and economic downturn.

Mr Cameron commented: "You don't have to persuade me that high marginal tax rates are a bad idea, I think they are a fantastically bad idea."

He added: "If you're right that [the 50p rate] raises no revenue, even in the short term, then clearly it would be painless and advantageous to get rid of it at an early stage."

The new tax rate will be enforced from April 2010.

Under UK laws, a general election must be called by the middle of next year.