Osborne: '0% tax rate is better than a 10% tax rate'

The Chancellor George Osborne has dismissed Labour's proposal to reintroduce the 10p tax rate, paid for by a "mansion tax" on homes worth over £2 million.

Speaking on ITV's The Agenda, Mr Osborne said:

The Government - the Conservative Party and the Liberal Democrats - we've got a better policy which is a zero percent tax rate.

We've more than helped all the people that were clobbered by Gordon Brown's 10p tax rate by turning that 10p tax into a zero.

We've actually made people better off by £300 so there is a way of helping people on low incomes.

We've taken a million people out of tax altogether so I would say a zero percent tax rate is going to be a little bit more attractive at an election than a 10% tax rate and that's certainly been our priority.

The Agenda with Tom Bradby will be broadcast on ITV at 10.35pm tonight.

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Govt split over 'mansion tax'

The Coalition appears split over a "mansion tax." George Osborne told ITV's The Agenda said it will not be next month's Budget, calling it a "tax con". But Nick Clegg told ITV News the Tories "can't keep turning a blind eye to the super wealthy."