Top tax rate 'set' to be cut The Chancellor is reportedly preparing to cut the top rate of income tax, as he puts the finishing touches to his budget. Downing Street has dismissed claims that George Osborne will reduce the burden on those taking home more than £150,000 from 50p in the pound to 40p, as "speculation." The Guardian claims the Chancellor will take a softer line on high earners after research showed the top rate hike is bringing in far less money than expected. A preliminary study, due to be published next week, will apparently show the move has reaped hundreds of millions rather than £2.6 billion, as originally predicted. It follows mounting pressure from business leaders, as well as many Tories, that the 50p rate was putting high earners off settling in the UK. Others have argued that going easier on the highest earners at a time of austerity would be politically dangerous. Leading Lib Dems want any cut to the top rate matched by new taxes targeting the wealthy. Government sources have confirmed that Mr Osborne will to introduce a "Downton Abbey" tax break for the television industry. The Chancellor is expected to announce a consultation on extending the existing tax relief worth £100 million a year to the British film industry to high-end TV productions. Mr Osborne hopes to help British companies compete in the increasingly popular market until now dominated by US hits like Mad Men and The Wire.