How the rich deferred bonuses to avoid the 50p tax rate

Earnings rose by an unusual high of 2.1% in the latest quarter but only because bonuses were paid in April, rather than March, to benefit from the new 45p rate.

At a time when Labour is attacking the coalition for presiding over a "cost of living crisis", the latest figures on earnings contain the superficially good news that the average weekly wage, including bonus payments, rose by 2.1% between April and June compared with the same period last year - the first time the growth rate has exceeded 2% since late 2011. 

But read on and it soon becomes clear what lies behind the spike. The ONS notes that "The relatively high growth rate for April to June 2013 partly reflects unusually high bonus payments in April 2013. Some businesses have reported that they paid bonuses in March last year but in April this year." 

The ONS doesn't explain why they did so, but it might just have something to do with the fact that April was the month that the cut in the top rate of tax to 45p took effect. Had businesses paid out bonuses in March as usual, they would have been taxed at the higher rate of 50p - this was avoidance on a grand scale. 

If we strip out bonuses, average weekly earnings rose by just 1.1%, 1.8% below the rate of CPI inflation. As the Conservatives resurrect the myth that "we're all in this together", today's figures are a salutary reminder that we're not. 

George Osborne attends a press conference on July 19, 2013 during the G20 Finance Ministers and Central Bank Governors' meeting in Moscow. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Could Jeremy Corbyn still be excluded from the leadership race? The High Court will rule today

Labour donor Michael Foster has applied for a judgement. 

If you thought Labour's National Executive Committee's decision to let Jeremy Corbyn automatically run again for leader was the end of it, think again. 

Today, the High Court will decide whether the NEC made the right judgement - or if Corbyn should have been forced to seek nominations from 51 MPs, which would effectively block him from the ballot.

The legal challenge is brought by Michael Foster, a Labour donor and former parliamentary candidate. Corbyn is listed as one of the defendants.

Before the NEC decision, both Corbyn's team and the rebel MPs sought legal advice.

Foster has maintained he is simply seeking the views of experts. 

Nevertheless, he has clashed with Corbyn before. He heckled the Labour leader, whose party has been racked with anti-Semitism scandals, at a Labour Friends of Israel event in September 2015, where he demanded: "Say the word Israel."

But should the judge decide in favour of Foster, would the Labour leadership challenge really be over?

Dr Peter Catterall, a reader in history at Westminster University and a specialist in opposition studies, doesn't think so. He said: "The Labour party is a private institution, so unless they are actually breaking the law, it seems to me it is about how you interpret the rules of the party."

Corbyn's bid to be personally mentioned on the ballot paper was a smart move, he said, and the High Court's decision is unlikely to heal wounds.

 "You have to ask yourself, what is the point of doing this? What does success look like?" he said. "Will it simply reinforce the idea that Mr Corbyn is being made a martyr by people who are out to get him?"