Tuesday, 18 March 2014

Lib Dems Win The Battle Over Tax Cuts

After a turbulent weekend for George Osborne, with Tory backbenchers lining up to demand he increase the 40p tax rate to help better-off earners, today Danny Alexander has set out the score when it comes to the Lib Dems' tax cutting priorities.

Writing in the Evening Standard, he said that Liberal Democrats in Government are working to cut taxes for low and middle earners, not the highest paid. That's why we have delivered a £700 tax cut for 25 million people - and are pushing to go even further in this week's Budget.

He said:

"Since the Lib-Dems first forced this idea on to the agenda in 2010, Tories have pushed a range of other ideas. In the last election it was inheritance tax cuts for millionaires; most recently, some Tories say help should be focused on 40p rate payers and not on every worker. The fact that raising the tax-free allowance is a Liberal Democrat idea is clearly deeply frustrating to many Conservatives, if their public pressure for a different focus is any guide.

I believe that raising the personal allowance is the fairest and most effective way to allow most people to keep more of their own money, rather than adjusting the higher rate bands. That's why we'd go further in the next Parliament and raise the amount you can earn tax-free to £12,500.

Raising the personal tax allowance means that higher-rate taxpayers pay less income tax too. It's the right thing to do, and everyone should get behind it no matter what their political frustrations."

Danny also reiterated Lib Dem policy for a Mansion Tax on houses worth over £2 million, which the Conservatives have repeatedly blocked.