Business secretary Vince Cable has confirmed that negotiations to replace the 50p income tax rate with some form of wealth tax, or “mansion tax”, are ongoing within the coalition ahead of the Budget.
Cable added that the Liberal Democrats were not "ideologically wedded to the 50p tax rate" as the Chancellor comes under increasing pressure to abolish it later this month.
He told BBC Radio 4's Today that while the exact nature of the tax was currently being negotiated, a mansion tax on expensive homes was an "economically sensible way” of replacing the 50p rate.
About Robert Lovell
Business and finance journalist