Emma today called on the Chancellor to explain his decision to scrap the top rate of tax for those earning over £150,000 a year.

Speaking in the House of Commons today, Emma asked the Financial Secretary to the Treasury:

“According to the Institute of Fiscal Studies, it is impossible to judge the effectiveness of the 50p tax rate on the basis of one year alone. Will the Minister therefore now admit that the Government’s decision to scrap the 50p tax rate was purely ideological given that the evidence in support of it is clearly non-existent?”

Following her question, Emma said:

“There is no significant evidence to support the Government’s claim that scrapping the 50p tax rate will boost revenue from taxation. They have not produced any evidence that the richest people in our country will suddenly start paying tax because the top tax rate has been reduced.

This is an ideologically motivated decision taken by a cabinet of millionaires to give the richest 14,000 people in the country a £40,000 tax cut. Whilst middle income families and pensioners in Wolverhampton and across the country are seeing their tax bills rise, the Government is giving a tax cut to the very richest in society. The Government is out of touch and should urgently reconsider its decision.”