Chancellor promises a Budget for 'working people'

Chancellor George Osborne delivers his Budget on Wednesday Credit: Reuters

George Osborne says his priority for this week's Budget is to help people on low and middle incomes.

The Chancellor also promised an attack on a property tax dodge by the rich. He denied he was still at loggerheads with the Liberal Democrats.

Mr Osborne told BBC1's Andrew Marr Show:

"What you will see on Wednesday is a Budget for working people, a Budget that shows Britain can earn its way in the world, a Budget that says Britain is not content with being in the second rank of economic powers.

We want to be in the front rank of economic powers and we are prepared to confront our problems to create jobs, growth and prosperity and a brighter future for the next generation.

The bulk of the measures in the Budget are going to be targeted at working people on low and middle incomes. That is our priority.

People want to make sure that all sections of society are paying their fair share.

On this specific issue of stamp duty avoidance, rich people - often foreigners who come to this country but also people here in Britain - who put homes into companies to avoid stamp duty, that is completely unacceptable and we are going to come down on that practice like a tonne of bricks.

We are going to be extremely aggressive in dealing with it and people are going to face a very punitive charge. People have had their warning: they have got to pay stamp duty on the homes they live in."

However, our Political Correspondent Alex Forrest says that many are furious at talk of Osborne scrapping the 50p rate of income tax.