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Budget: Osborne unveils home-building plans

George Osborne reveals an extension of the Help to Buy scheme and plans for new garden city with 15,000 new homes.

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Osborne refuses to be drawn on 40p rate

George Osborne says the government has planned a 1% increase in the 40p tax rate. Credit: BBC/Andrew Marr Show

George Osborne has refused to be drawn on calls to cut the 40p tax rate in real terms, despite facing pressure to help middle income earners being drawn into the higher levy.

The Chancellor told the Andrew Marr Show the government's plans are for a 1% rise in the threshold - a fall when inflation is factored in.

Mr Osborne was urged to raise the 40% tax threshold by former Conservative chancellor Lord Lawson earlier this week.

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