It is forecast that Chancellor George Osborne will cut the 50p tax rate to 45p in his Budget today.

At 12.30pm, Chancellor George Osborne will announce his plans for supporting the economy and achieving strong and stable growth in 2012. He will also set out key decisions on tax, borrowing and spending.

Over the weekend, it was speculated that Mr Osborne could reduce the 50p tax rate paid on incomes above £150,000 to 45p in April 2013. It is hoped this cut will actually raise more money as fewer high earners will avoid it. There is also the possibility it could be cut as far as 40p.

It has been estimated the rate brought in less than £1bn in its first year after it was introduced by Labour in 2010.

There are currently around 300,000 people in the UK who earn over £150,000.

A survey by polling consultancy ComRes last week, which surveyed 2,000 people, found that 58 per cent of people were against the cut, including 70 per cent of LibDem supporters.

In return for the reduction, the Lib Dems are arguing for a so-called ‘tycoon tax’, which is a series of anti-tax avoidance measures on the wealthiest.

Other possible announcements include the introduction of a wealth tax, a so-called ‘mansion tax’ and changes to the annual allowances for tax relief on pensions. Some experts have warned he could chop higher rate relief on pensions.

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