Shapps: 'Only a madman' would keep 50p rate

Conservative Party chairman Grant Shapps has defended the scrapping of the 50p top rate of tax on earnings over £150,000 a year.

He said "only a madman would want to keep a system like that in place" because the higher rate "raised £7bn less" than before its introduction.

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Top income tax rate falls to 45%

A raft of government changes to tax reform come into effect from today, including a cut in the top rate of income tax from 50p to 45p.