Osborne 'very happy' for government to consider publishing MPs personal tax returns We are very happy to consider publishing tax returns for people seeking the highest offices in the land. Of course, they do it in America. In his first newspaper interview since last month's Budget, the Chancellor says he knew his policies would prove "controversial" but said they were necessary to make Britain more competitive. He has faced widespread criticism for cutting the 50p rate while mounting a £3 billion "stealth" raid on pensioners and introducing a "pasty tax" on the sale of hot baked goods. He says: "We are not in a daily popularity contest but Britain is in a daily competition contest around the world. I think this Government is helping Britain to win that contest. He adds that plans to increase taxes for pensioners are "right and fair" and says new levies on pasties and other bakery food are necessary to address a "glaring anomaly." The Chancellor indicates that the Government must take risks now to "do the heavy lifting," and suggests that future budgets will be less controversial. Mr Osborne insists that the Prime Minister and he are "in touch" with ordinary people and claims that accusations they live in a "different world" are simply "the usual charge from the usual suspects." His pledge to consider publishing minister's tax returns comes after Boris Johnson and Ken Livingstone, the London mayoral candidates, disclosed details of their tax affairs earlier this week. Some senior Conservatives are concerned that their complex financial affairs and relatively high earnings could spark a backlash at the polls if their tax returns are made public. Mitt Romney, the US Presidential candidate, was criticised after publishing his tax return which showed that he paid tax at a rate of just 13.9 percent on his multi-million dollar earnings. But Mr Osborne indicates he would welcome greater transparency. He says: "The Conservative Party has been at the forefront of transparency, we are far more transparent about the way Government operates. When it comes to publishing tax returns...personally, I don't set my face against it. But we have to think through the issues. You have to think through the advantages and disadvantages. We have got to think through the issue of taxpayer confidentiality, which is a very important principle in Britain. He called for greater scrutiny of the tax affairs of Ken Livingstone, the Labour candidate for Mayor of London, who has been accused of avoiding significant amounts of income tax by funnelling money through a private firm he owns with his wife. A spokesman for Mr Livingstone has dismissed the claims and said he has offered "fuller disclosure than any other candidate. But Mr Osborne says: "The reason we are talking about this now is that this is a smokescreen for Ken Livingstone's tax affairs.Let's not take the focus off him." Downing Street aides yesterday said they had no plans to publish the returns and told ministers not to answer questions on the subject. The Liberal Democrats adopted the same line and Labour declined to comment. It is understood that no decision on publishing ministerial tax returns will be taken until after next month's mayoral election. Mr Osborne refuses to clarify the current status of his own tax affairs after he recently said he was not a 50p taxpayer in the last tax year. In last month's budget, the Chancellor announced that the controversial top rate would fall to 45p - prompting questions over whether he would benefit from the decision. In today's interview he says: "On the last tax return that I filled in [covering the 2010-11 tax year], I was not a 50p taxpayer...And, no doubt, next time I fill in a tax return, I will be asked the question and will give you a straightforward answer then." Asked on three further occasions whether his income would currently attract tax at the highest rate, he repeats: "I will answer the question as and when I fill in my tax return." He strongly defends the decision to cut the top rate of tax which he says has been welcomed throughout the world. "It was absolutely hopeless for Britain to have a top rate of tax higher than France," he said. We even had the French President joking about the fact that Britain had such a high top rate of tax. He plays down speculation that the top rate would be cut again to 40p - its previous level before the financial crisis. "I'm very happy with the 45p rate of tax," he said. We've got it to a good place where it's competitive. The Chancellor also defends the so-called "granny tax"- plans to freeze the level at which pensioners" start paying tax - a tax perk first introduced by Sir Winston Churchill almost a century ago. He says: "When you try and make the tax system flatter and simpler and more competitive it involves difficult choices...Its still the right thing to do. I knew it was going to be a controversial change but I think it is the right change. He acknowledges that "of course" pensioners should be "rewarded for having worked hard throughout their lives," but says they will benefit this weekend from the largest increase in the state pension. He says: "What's happening this weekend is the largest increase in the state pension. That is a really significant demonstration of our society's commitment to our pensioners. I think that needs to be [taken] into account when you are talking about freezing a rather complicated allowance that a whole host of organisations have pointed out to us is, very complicated and needed reform. Mr Osborne also rejects claims that top Conservatives are unsympathetic to the concerns of ordinary Britons. "That is, again, a usual charge from the usual suspects," he said. It's now been four years since we were all chased around by people in top hats so it's hardly a new charge. I don't think its relevant now and I don't think it was relevant then. He adds: "I feel that as long as the Government is on the side of those working people, then it will be a Government that is in touch." The Chancellor also says that mid-way between elections it is important that ministers to not become "obsessed" by newspaper headlines when they are only mid-way between elections. "You mustn't get your heard turned by the good reviews and you mustn't get too perturbed by the bad reviews," he says. Otherwise you should really go and get another job. It was Harry Truman [the former US President] who said "if you can't stand the heat, get out of the kitchen." He was talking about high office in [American] politics. And that is true in Britain. He also strongly denies that his recent tax changes may be comparable to stealth tax changes introduced by Gordon Brown. "I would say I am doing the complete opposite to what Gordon Brown did," Mr Osborne says.