Miliband committed to 50p tax “for foreseeable future”
Alan Johnson had surprised colleagues by saying that, in five years’ time, Labour might not see the need for the higher rate introduced by Alistair Darling earlier this year. But the Labour leader had indicated, along with other candidates in the party’s summer leadership election, that the 50p rate was permanent. Mr Miliband said in the summer that the new level of tax should stay because it was “not just about reducing the deficit, it’s about fairness in society”. He added: “Let me say plainly: I would keep the top rate of income tax at 50p permanently.” Yesterday, Mr Miliband moved to restate his commitment to the higher rate. His spokesman said: “We remain committed to it for now and the foreseeable future. – The Telegraph
Ed Miliband has started to retreat from his totemic pledge to make “permanent” the 50p top rate of tax, under pressure from Alan Johnson, his shadow chancellor. The Labour leader’s promise to take half the earnings of richer individuals in tax was a key part of his pitch for the Labour leadership, helping him to win union support and pip his brother David to the top job. But on Monday Mr Miliband began the latest phase of his drive to take Labour towards the centre ground, dropping his earlier insistence that a 50p rate should be retained indefinitely. “We remain committed to it now and for the foreseeable future,” Mr Miliband’s spokesman said – a shift in position that brings him into line with the more moderate views of Mr Johnson. – The FT Read the rest of this entry »








