Lib Dems claim Tories will have to make cuts to meet tax pledges

Nick Clegg has said the Conservative party have no way to meet their tax pledges on raising the personal allowance to £12,500 without doing, "what Tories do best - cut."

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Leslie: Tories raised taxes but cut them for millionaires

Chris Leslie accused the Conservatives of favouring the rich Credit: Yui Mok/PA

Labour's shadow treasury secretary Chris Leslie has reacted to George Osborne's comments that cutting the top rate of income tax was "not a priority" today by accusing the Conservatives of favouring the rich.

He said: "The Conservative Party's secret plan has now been exposed.

"The Tories have raised taxes for millions but cut them for millionaires. And it's now clear that if they win the election they'll do the same again."

Cameron: Cutting top rate of tax 'not our policy'

David Cameron has said cutting the top rate of tax is "not our policy" after the Chancellor failed to rule out further help for top earners if the Conservatives win the next election.

The Prime Minister said, "It's not our policy, it's not our plan. Our plan is to raise to £12,500 the basic rate threshold so that we take another million people out of income tax all together and cut tax for 30 million people

"Those are our plans and they're the ones we'll pursue," he added.

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Osborne: Cutting top rate of income tax 'not priority'

Chancellor George Osborne has declined to rule out cutting the top rate of income tax rate from 45p to 40p if the Tories win the General Election.

Speaking to Sky's Dermot Murnaghan, Mr Osborne insisted that it is not a priority for the Conservative Party, and the "big tax commitments" for the next parliament were further raising the tax-free personal allowance and raising thresholds so only those earning £50,000 or more would pay the higher 40p rate.

George Osborne outlined his party's 'big tax commitments'. Credit: Sky News

"If that was our priority or our plan we would have made it part of our plan and made it one of our priorities.

"Judge us by what we want to do and what we want to do is increase the tax-free personal allowance to £12,500 so people full-time on the minimum wage don't have to pay income tax and millions are better off."

Balls: Tory tax changes left homes '£1,100 worse off'

Ed Balls has claimed that tax changes introduced since 2010 mean the average household is "£1,100 worse off".

Balls said: "What the evidence shows - from the independent Institute for Fiscal Studies - is when you look at all the tax changes introduced since 2010, the average household in our country is £1,100 worse off. Because of higher VAT and cuts to tax credits.

"This is a Tory government which cut taxes for the richest, for people earning over £150,000, giving millionaires tens of thousands of pounds of tax cuts, but put up taxes for everybody else.

"They said we are all in it together. That is now being exposed as a nonsense. £1,100 worse off - that's what they delivered."

Balls: 'Millions paying more - millionaires paying less'

Ed Balls has said a further reduction to 40p would benefit them by £340,000, £1.94 million and £3.94 million over the course of the next parliament, it said.

While millions are paying more, millionaires are paying less.

David Cameron and George Osborne have given the very highest earners a huge tax cut. The Tories ditched the idea that we are 'all in this together' and looked after their friends first.

And if the Tories win the election, they're set to give the top 1% of earners another big tax cut - cutting the top rate of tax again from 45p to 40p.

How can this be fair when working people are struggling, our NHS is in crisis and when we still need to get the deficit down?

– Ed Balls writing in the Sunday Mirror

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Ed Balls goes on the offensive over 'tax breaks for the rich'

Millionaires on seven-figure salaries have already paid at least £85,000 less into public funds because of a cut in the top rate of income tax, Labour claimed as it warned of more help for top earners if the Tories win the General Election.

Ed Balls goes on the offensive over tax breaks for the rich. Credit: ITV News

Shadow chancellor Ed Balls - who is committed to restoring the 50p rate on those earning £150,000-plus a year, challenged David Cameron to rule out a further reduction from 45p if his party holds on to power on May 7.

Labour said its figures showed that in the two tax years since the lower rate was introduced, someone on £1 million a year had seen their bill cut £85,000, a £5 million earner £485,000 and anyone on £8 million almost £985,000.

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