Osborne: increase in people paying 40p tax good for Conservatives
The Chancellor faces ridicule after he tells Tories there are ‘advantages’ to more people paying the higher rate of tax
CHANCELLOR George Osborne told a meeting of fellow Conservatives that forcing more people to pay the higher rate of tax is good because it makes them want to cut government spending.
Osborne made the comments last month at a meeting with senior Conservatives of the 1922 Committee, a powerful group that speaks for Tory backbenchers.
“Let’s not forget there are advantages in more people paying tax at 40p,” the Chancellor said. “It means they feel they are a success and joining the aspirational classes. That means they are more likely to think like Conservatives and vote Conservative.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“If they are paying 40p tax they have a greater interest in cutting Government spending because they are paying for it. All the polling evidence suggests I am right.”
Osborne’s comments are reported today in the Mail on Sunday. An MP who was at the meeting told the paper: “There was a stunned silence. I never thought I’d hear a Tory Chancellor say paying more tax is good for the middle classes. It was a Marie Antoinette moment.”
Another MP said: “The 40p rate may not affect the millionaire son of a baronet like Mr Osborne but it is killing hard-working people who earn around £40,000. It was an insult and shows how out of touch this Government has become.”
Osborne will unveil his Budget on the 19 March. He is reportedly considering increasing the sum that workers can earn before paying income tax to £10,500 while leaving the higher rate at 40p despite calls from fellow Conservatives to increase it to appease middle class voters.
One Conservative MP at the 1922 meeting told Osborne he was being “illogical”, adding: “You cannot argue that making more people pay 40p tax is good because they are more likely to want to cut government spending, while letting more people at the bottom end pay no tax whatsoever.”
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
The mental health crisis affecting vets
Under The Radar Death of Hampshire vet highlights mental health issues plaguing the industry
By Chas Newkey-Burden, The Week UK Published
-
The Onion is having a very ironic laugh with Infowars
The Explainer The satirical newspaper is purchasing the controversial website out of bankruptcy
By Justin Klawans, The Week US Published
-
'Rahmbo, back from Japan, will be looking for a job? Really?'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Last hopes for justice for UK's nuclear test veterans
Under the Radar Thousands of ex-service personnel say their lives have been blighted by aggressive cancers and genetic mutations
By Sorcha Bradley, The Week UK Published
-
Will Donald Trump wreck the Brexit deal?
Today's Big Question President-elect's victory could help UK's reset with the EU, but a free-trade agreement with the US to dodge his threatened tariffs could hinder it
By Harriet Marsden, The Week UK Published
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK Published
-
What is Lammy hoping to achieve in China?
Today's Big Question Foreign secretary heads to Beijing as Labour seeks cooperation on global challenges and courts opportunities for trade and investment
By Harriet Marsden, The Week UK Published
-
Is Britain about to 'boil over'?
Today's Big Question A message shared across far-right groups listed more than 30 potential targets for violence in the UK today
By Sorcha Bradley, The Week UK Published
-
UK's Starmer slams 'far-right thuggery' at riots
Speed Read The anti-immigrant violence was spurred by false rumors that the suspect in the Southport knife attack was an immigrant
By Peter Weber, The Week US Published
-
How could J.D. Vance impact the special relationship?
Today's Big Question Trump's hawkish pick for VP said UK is the first 'truly Islamist country' with a nuclear weapon
By Harriet Marsden, The Week UK Published
-
The Tamils stranded on 'secretive' British island in Indian Ocean
Under the Radar Migrants 'unlawfully detained' since 2021 shipwreck on UK-controlled Diego Garcia, site of important US military base
By Harriet Marsden, The Week UK Published