40p tax threshold rises by one per cent
George Osborne has left those who were hoping for a significant rise in the 40p tax band disappointed, after he announced a one per cent rise from annual incomes of £41,451 in the current financial year to £41,866 next month.
HMRC have said the government's decision will see the number of people paying the 40p rate reach 5.3m by 2016.
A poll conducted by the Institute of Directors (IoD) of 1,000 of its business members, showed support for prioritising an expansion of the basic rate tax band, meaning that workers would not start to pay the 40 per cent higher rate of tax until they earn £50,000.
Read our full summary of the budget here.