Miliband queries tax cut hint

Prime Minister David Cameron should not even be contemplating a tax cut for the highest earners, Labour leader Ed Miliband has said.

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Mr Miliband said it would be wrong for the Tories to consider cutting the top rate of tax for those earning more than £150,000

Prime Minister David Cameron should not even be contemplating a tax cut for the highest earners, Labour leader Ed Miliband has said.

Mr Miliband told MPs that while millions of families were facing a financial squeeze, it would be wrong for the Tories to consider cutting the top rate of tax for those earning more than £150,000 from 45p to 40p.

The Government has already cut the top rate of tax from 50p to 45p but in an interview with The Spectator, Mr Cameron said he kept a "little black book" of policies which had been blocked by the Liberal Democrats.

In the interview, Mr Cameron hinted that if the Tories won an outright victory at the 2015 general election, he would like to reduce the top rate of tax still further to 40p.

But Mr Miliband claimed the Prime Minister was wrong to consider such a proposal.

In a question to Mr Cameron, he said : "Today we learned of your plan to cut the top rate of income tax from 45p to 40p.

"Can you just explain - why are you even contemplating a further tax cut for millionaires, who have received hundreds of thousands of pounds worth of tax cuts - when ordinary families are so squeezed?"

But Mr Cameron said the coalition had always maintained a higher top rate of tax than while Mr Miliband was in government.

He replied: " The top rate of tax under this government is higher than any of the times you were in the cabinet, you were in the government, or you were in the Treasury, trying to wreck the economy in the first place."