Chancellor of the Exchequer George Osborne took a big political gamble today by cutting the top rate of tax. The Chancellor argued that the measure would actually increase revenue , but he has left himself open to accusations that he is ‘out of touch’. There was also criticism of his decision to abolish age related personal allowances for pensioners, which is expected to increase Treasury coffers by £3 billion.
Business has welcomed the Chancellor’s pledge to reduce corporation tax and provide additional support for high potential sectors such as aerospace and the creative industries.
Much will now depend on two factors: the Government’s ability to convince the public that the wealthiest are now paying more whilst low earners are better off; and that the raft of measures outlined will actually result in real economic growth.
Click here for Keene’s full analysis of the 2012 Budget