George Osborne was caught in a Coalition battle over Budget tax cuts today.
Liam Fox, the Tory former defence secretary, urged the Chancellor to help businesses by "reducing taxes on employment" on March 21 and making it easier to hire and fire people.
But David Laws, the Lib-Dem former Treasury chief secretary, said hard-working families should be helped by raising the income tax threshold to £10,000 ahead of schedule.
He proposed taking "a bigger contribution from the top one per cent to five per cent of earners". The Lib-Dems are said to want to revive plans for a "mansion tax" on homes worth more than £2 million.
Better-than-expected borrowing figures have given the Chancellor scope for tax cuts and he has met Tory MPs to discuss their wishes.
