The business secretary, Vince Cable, has confirmed that the 50p rate of income tax will eventually be scrapped.

However, he has not given any indication as to when the top rate of tax could be abolished.

It is currently levied on those earning over £150,000 per annum.

During the Budget last week the Chancellor, George Osborne, said that he saw the rate as temporary.

In weekend interviews, Cable indicated that he was still looking for a replacement tax to take the form of a property-wealth based tax.