'Lib Dems won't cut tax rate below 45p'

The Chief Secretary to the Treasury, Danny Alexander, says he can't support the Tory plan to cut the higher rate of income tax from 45p down to 40p, arguing that the 45p rate "gets the balance right".

Speaking on The Andrew Marr Show, the Lib Dem MP said that a fairer tax system was a priority for his party at the next election and that the focus should be cutting taxes for working people, not wealthy people.

Asked whether the government's pension proposals in the Budget could destroy the annuity industry, Mr Alexander said, "I think a lot of people will [still] want to buy annuities. There's still a very strong market there... This will also help to make the annuity market more competitive."

Mr Alexander also defended the government's controversial Help to Buy scheme, maintaining that the latest figures prove it is working and the numbers speak for themselves - more than 17000 people have bought properties over the past nine months and most are first-time buyers.

You can watch the Andrew Marr Show in full on the BBC iPlayer.