Sweden's centre right -government's plan to scrap the country's wealth tax, will remove one of the most powerful symbols of seven decades of almost uninterrupted leftwing rule.

Fredrik Reinfeldt, prime minister, who won elections last September, said a proposal to eradicate the 1.5 per cent tax on personal wealth of more than SKr1.5m ($200,000, €160,000, £109,000) would be included in next month's budget.