David Cameron ditches plans to scrap 50p tax
Prime Minister David Cameron has abandoned plans to scrap the 50p rate of income tax, according to The Daily Telegraph.
According to the paper, Cameron (pictured) and Chancellor George Osborne have concluded that abolishing the levy is politically impossible in the near future.
Cameron has emphasised the 50p rate should only be temporary. HMRC is due to publish a review outlining how much money the tax raises on January 31.
Reports suggest the review will show a surge in tax revenues totalling hundreds of millions of pounds from the first year the 50p rate was implemented.
The Telegraph says Osborne is likely to indicate in his March Budget that the decision to maintain the top rate of income tax until 2015 remains under review.
The tax is also expected to be subject to an annual review of its impact on enterprise.
Last year, a report by the Centre for Economics and Business Research found that the 50p higher rate of income tax would cost the Government up to £1bn a year as wealthier people would look to leave the UK to avoid the levy.