Osborne ‘briefed but did not leak’ on Budget

CHANCELLOR George Osborne has admitted authorising advance media briefings on parts of the Budget but denied leaking information about tax rates.

He also blamed the requirements of coalition Government for the scale of leaks ahead of last week’s Budget which were described by Commons Treasury Committee chairman Andrew Tyrie as “exceptional”.

Mr Osborne said the need to ensure he had the support of Liberal Democrats for his measures, coupled with the new requirement to deliver details of major spending decisions to the Office for Budget Responsibility 10 days in advance, meant it was more difficult to maintain the traditional veil of secrecy.

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But he acknowledged that some elements of the Budget, such as the announcement of a consultation on tax breaks for the TV industry and on changes to North Sea oil levies, had been briefed to the press with his authorisation.

He told MPs: “I can confirm to the committee that no Treasury official, no Treasury Minister, no Treasury special adviser, briefed before the Budget any specific information on tax rates or tax allowances.”

Challenged over Press reports of key tax measures like the cut in the 50p rate of income tax and the hike in stamp duty, Mr Osborne said: “I don’t know where those stories came from and I would rather they had not appeared.”

He brushed off criticism of his decision to cut the top rate of tax for the country’s highest earners, saying he was not prepared to keep the 50p rate “to make MPs feel good”.

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“There was something particularly damaging about having a 50p rate of tax. I don’t think that applies to a 45p rate of tax. I think we now have a competitive top rate of tax,” he added.

He also defended his controversial decision to phase out aged-related allowances – dubbed the “granny tax” by critics.

“No one likes it when their allowances are frozen. These are all difficult decisions,” he said.

He also admitted to MPs that he could not remember the last time he bought a pasty in high-street baker Greggs.

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The chain saw millions wiped off its shares after a clampdown was announced on a loophole which has meant some hot takeaway foods escaped VAT, prompting fresh accusations the Government was out of touch by taxing cheap, popular food products while cutting the 50p rate of tax.

Asked by Bassetlaw MP John Mann the last time he bought a pasty there, he replied: “I can’t remember the last time I bought a pasty in Greggs.”

Mr Mann retorted: “That kind of sums it up.”

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