If you are a high earner then it could be down to you to pay for the mess that the UK economy is in right now.

The Chancellor Alistair Darling is looking at reducing the VAT rate from the present 17.5% to 15% to give an immediate stimulus into the UK economy. However, moves like this along with extra government spending will need to be paid for and this is suggested to be from high income earners.

It has been suggested that UK Government borrowing could hit £100 billion and this will need to be repaid at some stage. The tax increases will likely be delayed until after the next election and the higher rate tax increase will not in itself be enough to recoup the “Tax Hole” caused by the proposed cuts.