Lib Dems drop opposition to scrapping 50p tax in new Budget deal Senior Conservatives are committed to scrapping the 50p rate eventually, but have not yet decided if now is the right time for what would be highly controversial move for their party. Despite mounting economic arguments against the 50p rate, some Conservatives feel that scrapping the rate at a time of rising unemployment and falling household incomes would be a political mistake, allowing Labour to paint the Tories as the party of the rich. One comprimise which has been suggested is to reduce the rate to 45p. David Cameron and Mr Osborne will today hold a conference call with Mr Clegg and Danny Alexander, the Liberal Democrat Chief Secretary to the Treasury, to discuss the Budget. The so-called Quad of senior Cabinet ministers will meet again on Monday to formally agree the Budget package Mr Osborne will present to MPs on Wednesday. Mr Clegg last week told the Daily Telegraph that he was prepared to accept the end of the 50p tax rate in exchange for new tax rules for the richest, such as a "Tycoon Tax" minimum rate of tax for those with the highest incomes. Lib Dem sources last night confirmed that a potential deal was slowly emerging in the Budget negotiations. However, the deal is far from done, not least because the Conservatives have not yet decided to push for the end of the 50p rate this year. In an unsourced report, The Guardian today claims that the deal to drop the 50p rate was not yet done and dusted, but was close to being so. A study by HM Revenue and Customs is next week expected to reveal that the top rate of tax - introduced in 2010 by Labour - is raising far less than the £2.6 billion in revenue the Treasury had originally forecast. Critics say people with high incomes find legal ways to avoid the tax, including moving their affairs offshore. . The study will bolster arguments from right-wing Conservatives that scrapping the tax rate would boost economic growth. But other Tories are wary of the political impact of such a move. Some Tories are concerned that their party risks appearing out of touch with the concerns of people on low and middle incomes. One Conservative minister said cutting the 50p tax rate next week would be political mistake for the party, especially in the light of next year's child benefit cut for people earning more than £43,0000. The minister said: "It would be a disaster for us if we were seen to cut taxes for people on £150,000 at the same time as taking child benefit from people on £45,000. I can't believe George would make that mistake.