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Tuesday, 7 April 2015

Lib Dems target wealthy tax dodgers to fund tax cuts

Every penny raised from cracking down on wealthy tax dodgers will fund tax cuts for middle and low earners under Liberal Democrat plans, the Lib Dem leader Nick Clegg has said. The Lib Dems say they will fund increases to the Personal Allowance to £12,500 with money raised from evasion and avoidance after the job of deficit reduction is complete by 2017/18.

Lib Dems say they'll increase the tax rate on dividends for higher and additional rate taxpayers to fund a commitment to increase the threshold to £11,000 in the first year of the next parliament. 

The detailed plans come a day after the Lib Dems delivered on their 2010 commitment to raise the Personal Allowance to £10,600, which will deliver a tax cut worth £825 to those on middle and low incomes.

By contrast, the Lib Dems claim that Labour's tax plans will leave people £340 worse off a year. Liberal Democrat analysis shows that Labour’s proposed 10p rate band will only offer taxpayers a 'measly' £37 tax cut compared to the Liberal Democrat commitment to cut income tax by almost £400 in the next parliament.

Commenting on the Lib Dem tax cut policy, Nick Clegg said: "This is about fairness. The Liberal Democrats want to continue cutting taxes for middle and low earners, just as we have done every year in government. Only the Liberal Democrats will make sure our recovery is strong, stable and fair. We will cut less than the Conservatives and borrow less than Labour."

Attacking the Tories Mr Clegg, said: The Conservatives want bigger tax cuts for the wealthy, paid for by the poorest. The Liberal Democrats' job in government has been to fix the economy in the fairest way possible. We have had to drag the Conservatives to that position. Now they want to veer off from the balanced approach of the coalition so they can help their friends in big business and big houses by cutting public services much more deeply than necessary."

Attacking Labour’s tax plans, Nick Clegg, said: "In government, we secured a tax cut totalling £825 every year for millions of ordinary working people. We now plan to take this further, raising the threshold to £12,500 and giving millions of people a further tax cut worth nearly £400. Labour’s short-term economic plan will lead to mounting borrowing and leave taxpayers short by hundreds of pounds, which is unfair and reckless."

"Ed Balls and Ed Miliband’s tax plans are economically illiterate. Labour has already failed to commit the £8bn needed for the NHS, and are now failing to give taxpayers the tax cut they deserve." Mr Clegg added.