Reports are saying that the Tories are trying to negotiate a way of dropping the 50p tax rate with the Liberal Democrats and that Clegg and co are considering a deal.
If this happens, I believe this will be the final nail in the coffin for the government.
The deal will most likely see a ‘mansion tax’ replace the 50p tax rate. But the problem for the coalition is being able to communicate to voters that this is will be an adequate alternative to taxing the richest a 50p tax rate and this, in my opinion, will be their impossible task.
The media will only talk about the 50p rate of tax – reducing income tax for the richest, and it will be very difficult to filter the message through of how a mansion tax will work and whether it can fairly replace the 50p tax.
The perception will become a party looking after the richest at a time when the poorest are struggling.
It also crucially comes in a budget when they may also be removing child benefit from families, many of whom will be Tory voters, with one earner, while a couple earning double keep their benefits.
If these polices go ahead, I think we’ll see a decline in Tory poll ratings which they wont recover from.