Mon, 12 Apr 2010
The Liberal Democrats will today unveil evidence that the poorest 20% of people are losing more of their income in tax than they did in 1997, while the richest 20% are paying less.
Liberal Democrat Leader Nick Clegg will reveal further details of his party’s manifesto pledge for a £17bn tax switch to help rebalance Labour’s unfair tax system, putting £700 into the pockets of millions of people on low and middle incomes by raising the personal allowance to £10,000.
The income tax cuts will be paid for by closing loopholes that unfairly benefit those at the top, a crackdown on tax avoidance, a new mansion tax and higher aviation duties.
Commenting, Nick Clegg said:
“On the day Labour launches its manifesto, this is damning evidence that after 13 years they have failed to deliver fair taxes. Despite everything they said in 1997, life has got harder for people at the bottom and easier for people at the top.
“All the promises of fairness in Labour’s manifesto should be taken with a barrelful of salt. They cannot be trusted. This is yet another manifesto for an unfair Britain.
“Only the Liberal Democrats have a plan to radically rebalance the tax system to make it fair for all. We will ensure no-one pays tax on the first £10,000 they earn, paid for in full by closing loopholes that unfairly benefit the wealthy, the biggest-ever clampdown on tax avoidance, a new mansion tax and higher aviation duties.
“Our plans would be the biggest overhaul of British taxes since the Second World War.”