Clegg signals support for 50p tax rate

Deputy Prime Minister Nick Clegg has signalled his support for the 50p top rate of tax – putting him at odds with Chancellor George Osborne.

Speaking at a press conference, Clegg said the coalition Government is focused on relieving the taxation burden on low and middle income families squeezed by rising prices, reports the BBC.

But his stance would appear to differ from that of Osborne who has hinted the top rate of tax could be removed, describing it as "very uncompetitive".

A review into the 50p top rate conducted by the Inland Revenue will assess how much money the tax is raising - leading some to speculate the tax could be phased out by 2013.

Clegg's comments would appear to further deepen cracks in the coalition after business secretary Vince Cable and Osborne clashed over banking reform earlier this week.