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New Lib Dem policy prefers tax cuts

17/07/2008

Liberal Democrat leader Nick Clegg has pledged to "cut taxes for ordinary families" in a major shift in taxation policy.

Mr Clegg, speaking in the City this morning, signalled a firm commitment on taxation by condemning the "era of big, wasteful, intrusive government" as having "come to an end".

He said struggling families should be paying "much less" tax and said bills will be cut for low and middle income families through a replacement to the council tax.

"This government's spent more and more of your money and still failed the people who are most hard up," the Make Things Happen document - which outlines the Lib Dem stance - argues.

"So we'll get wasteful central government spending under control and give the economy a boost by cutting taxes from the bottom for those who need the most help.

"If there's money to spare, we won't simply spend it. We're looking for ways to cut Britain's overall tax burden, so ordinary families have more of their money to help themselves.

On benefits Mr Clegg promises to "simplify" the system. The state pension will be brought into line with earnings while a "fair deal" will be awarded to female pensioners.

Energy bills will be indirectly alleviated through a windfall tax on energy firms, which will be used to fund the insulating of homes and the creation of social tariffs encouraging people to use less energy.

Today's paper represents a big shift from previous Lib Dem policies, which until recently had been based on increasing the top rate of tax on high-earners to 50p.

Mr Clegg accused the government of having a "collective duvet day" in its management of the economy earlier today.

He continued his rhetoric of attacking the Conservatives as well as Labour for having "stopped listening to people" because they are "so used to being in power" and insisted "society is not broken" and that "we wouldn't be British if we just gave up on each other".

"There are no mistakes that governments have made that cannot be set right by the British people if only they are given the chance to do so," Mr Clegg continued.

"That is why the proposals in this document offer people - individuals, families and communities - the power to make a better life for themselves.

"That's what I'm in politics for. And it's what the Liberal Democrats are all about."