George Osborne on tax U-turn: 'We listened to charities'

Government plans to limit tax relief on charitable giving above £50,000, or 25% of income, have been dropped.

Chancellor George Osborne announced the idea in his March Budget, but said: "Listening to charities, any kind of cap would have damaged donations."

"We'll go ahead with the cap on other reliefs that wealthy people can claim on income tax," he added.

Earlier this week, the government dropped plans to impose the full rate of VAT on hot food - dubbed the "pasty tax" - and static caravans after protests from bakers and caravan makers.