Prime minister tells audience: 'I understand the problem with the 40p rate kicking in when people are not earning a lot of money'
David Cameron has given his strongest hint yet that he may be preparing a giveaway for higher-income earners when he said he would "love" to raise the level at which people started paying 40% tax.
Speaking to workers at a water company on Wednesday, the prime minister said many people "who don't see themselves as fundamentally wealthy" were paying the rate, which applies when people earn more than £41,865 a year. Stressing that he could not make any promises, Cameron said he understood the problem with the rate applying when people "are not earning a lot of money".
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