Budget 2012: Top tax rate cut from 50p to 45p

The 50p top rate of income tax will be cut to 45p from April 2013, Chancellor George Osborne has announced.

He said the rate damaged British competitiveness and had raised only a third of the £1bn originally expected.

Mr Osborne said five times as much would be raised from the wealthiest by other tax and anti-avoidance measures being brought in.

Budget 2012: Special report