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Sir Menzies primed for tax battle Sir Menzies primed for tax battle
(40 minutes later)
Lib Dem leader Sir Menzies Campbell is striving to avoid a blow to his authority as he puts his tax plans to a crunch vote at the party's conference.Lib Dem leader Sir Menzies Campbell is striving to avoid a blow to his authority as he puts his tax plans to a crunch vote at the party's conference.
Opponents of his plans to ditch the party's commitment to a 50p top tax rate say they think they can win the vote in Brighton.Opponents of his plans to ditch the party's commitment to a 50p top tax rate say they think they can win the vote in Brighton.
Sir Menzies' plans would use new green taxes to fund cuts to income taxes.Sir Menzies' plans would use new green taxes to fund cuts to income taxes.
The tax debate comes as Charles Kennedy returns to the conference platform nine months after quitting as leader.The tax debate comes as Charles Kennedy returns to the conference platform nine months after quitting as leader.
Mr Kennedy, who led the party to its best election result in 80 years in 2005, stepped down and admitted a drink problem after many of his senior spokespeople said they would no longer serve under him. Mr Kennedy, who led the party to its best election result in 80 years in 2005, admitted a drink problem and stepped down after many of his senior spokespeople said they would no longer serve under him.
But he is thought to still be popular with the wider party and is expected to receive a rapturous reception, although Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor. He is thought to still be popular with the wider party, although Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor.
'Moving beyond protest''Moving beyond protest'
The tax debate is the dominating policy issue at the conference in Brighton.The tax debate is the dominating policy issue at the conference in Brighton.
Ahead of the vote, Sir Menzies said "discipline and realism" were needed if the party was serious about government. Sir Menzies told BBC Radio 4's Today programme he "will be disappointed" if he loses the vote because he believes the proposals are the best way forward for the party.
However, he said that while the outcome of the poll will become party policy, it would have to go before the Lib Dem policy committee for it to be included in the manifesto.
Sir Menzies said "discipline and realism" were needed if the party was serious about government.
"Substance has got to prevail over symbolism," he said."Substance has got to prevail over symbolism," he said.
I think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questionedI think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questioned
"Because if we are serious and want to move from being a party of protest and a party of opposition, as we are, towards being a party of government, then we have to show we are serious about being a government.""Because if we are serious and want to move from being a party of protest and a party of opposition, as we are, towards being a party of government, then we have to show we are serious about being a government."
In the same session, North Bedfordshire Councillor Linda Jack indicated there was a concern among the "beard and sandals wing" that the party might be moving to the right.In the same session, North Bedfordshire Councillor Linda Jack indicated there was a concern among the "beard and sandals wing" that the party might be moving to the right.
But Sir Menzies insisted he was a "politician of the centre left" who wanted to make the tax system more redistributive.But Sir Menzies insisted he was a "politician of the centre left" who wanted to make the tax system more redistributive.
He wants to drop the past Lib Dem promise of a 50p tax on earnings over £100,000 and instead focus on "taxing pollution, not people".He wants to drop the past Lib Dem promise of a 50p tax on earnings over £100,000 and instead focus on "taxing pollution, not people".
Tax hikes for gas-guzzling cars and aviation would raise £8bn to help pay for the £18.7bn in tax cuts in other areas.Tax hikes for gas-guzzling cars and aviation would raise £8bn to help pay for the £18.7bn in tax cuts in other areas.
'Not soft on rich''Not soft on rich'
The Lib Dems say they would take two million people out of paying tax altogether by scrapping the 10p bottom tax rate and raising the threshold for national insurance contributions.The Lib Dems say they would take two million people out of paying tax altogether by scrapping the 10p bottom tax rate and raising the threshold for national insurance contributions.
There are sweeteners for middle earners too, through a 2% cut in the basic income tax rate, raising the threshold for the upper tax rate to £50,000 and cutting corporation tax by 1%.There are sweeteners for middle earners too, through a 2% cut in the basic income tax rate, raising the threshold for the upper tax rate to £50,000 and cutting corporation tax by 1%.
The Lib Dems say 90% of taxpayers will benefit from the package, with only the top 10% paying more.The Lib Dems say 90% of taxpayers will benefit from the package, with only the top 10% paying more.
They are pointing to comments from Robert Chote, director of the Institute of Fiscal Studies, who said: "Dropping the 50p tax rate wouldn't mean that the party had gone soft on the rich."They are pointing to comments from Robert Chote, director of the Institute of Fiscal Studies, who said: "Dropping the 50p tax rate wouldn't mean that the party had gone soft on the rich."
But Mr Chote said those households who do not currently pay tax would not gain, and could still be hit by higher green taxes.But Mr Chote said those households who do not currently pay tax would not gain, and could still be hit by higher green taxes.
Lib Dem MP and science spokesman Evan Harris is leading the challenge to the plans with an amendment which would impose a 50p tax rate on earnings over £150,000.Lib Dem MP and science spokesman Evan Harris is leading the challenge to the plans with an amendment which would impose a 50p tax rate on earnings over £150,000.
Mr Harris is claiming to have the support of a number of frontbench spokesman.Mr Harris is claiming to have the support of a number of frontbench spokesman.
Party campaigns chief Ed Davey said he expected all members of the Lib Dem "shadow cabinet" to vote for the tax package.Party campaigns chief Ed Davey said he expected all members of the Lib Dem "shadow cabinet" to vote for the tax package.