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Lord Lamont: '40% will end up becoming basic tax rate'

14 March 2014 Last updated at 03:23 GMT

Lord Lamont has said the threshold at which tax is paid at 40% needs to be raised or it will eventually become the basic rate of tax.

In a debate with Lord Oakeshott on Newsnight, the former chancellor said that the 40% tax-rate was "intended for the very, very rich" originally.

At present income of up to £32,010 is taxed at the "basic rate" of 20%, while a "higher rate" applies to income from £32,011 to £150,000.

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