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| Version 3 | Version 4 |
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| Lib Dem plan for £1m-property tax | Lib Dem plan for £1m-property tax |
| (10 minutes later) | |
| The Lib Dems are to outline plans for a tax on owners of £1m-plus homes, using the proceeds to help low-paid workers. | The Lib Dems are to outline plans for a tax on owners of £1m-plus homes, using the proceeds to help low-paid workers. |
| Treasury spokesman Vince Cable will announce plans for a 0.5% annual levy on the most expensive homes, raising £1bn, at the party conference later. | Treasury spokesman Vince Cable will announce plans for a 0.5% annual levy on the most expensive homes, raising £1bn, at the party conference later. |
| He told the BBC it would help fund plans to get four million people who earn less than £10,000 out of taxation. | He told the BBC it would help fund plans to get four million people who earn less than £10,000 out of taxation. |
| Mr Cable is expected to warn of "unpopular" choices on tax and spending and to brand the Tories as "dishonest". | Mr Cable is expected to warn of "unpopular" choices on tax and spending and to brand the Tories as "dishonest". |
| The new charge of 0.5% would apply to the value of a property above £1m. So if a home was worth £1.5m the 0.5% tax would apply to £500,000 of it, meaning the owner will have to pay £2,500 a year. The extra tax on a £4m property would be £15,000 a year. | |
| This is a small correction which I think will make a big difference for people who are really struggling to make ends meet Nick CleggLiberal Democrat leader | This is a small correction which I think will make a big difference for people who are really struggling to make ends meet Nick CleggLiberal Democrat leader |
| Speaking on BBC Breakfast, Mr Cable said: " We're talking about this proposal to raise money, to cut taxes on people who are at the bottom end of the income scale or on average income. | Speaking on BBC Breakfast, Mr Cable said: " We're talking about this proposal to raise money, to cut taxes on people who are at the bottom end of the income scale or on average income. |
| "Our overall tax proposal is about lifting four million people - workers and pensioners - out of taxation and cutting taxes for people at the bottom end in a fair way." | "Our overall tax proposal is about lifting four million people - workers and pensioners - out of taxation and cutting taxes for people at the bottom end in a fair way." |
| Party leader Nick Clegg told the BBC he felt the mood had shifted over the past ten years: "I think people, even at the top end, now accept we need to try and rebalance things a bit so that everyone moves together - the whole of society moves together." | Party leader Nick Clegg told the BBC he felt the mood had shifted over the past ten years: "I think people, even at the top end, now accept we need to try and rebalance things a bit so that everyone moves together - the whole of society moves together." |
| He said the reason for the new tax was "fairness" and rebalancing "one of the most unfair tax systems around". | He said the reason for the new tax was "fairness" and rebalancing "one of the most unfair tax systems around". |
| "This is a small correction which I think will make a big difference for people who are really struggling to make ends meet," he said. | "This is a small correction which I think will make a big difference for people who are really struggling to make ends meet," he said. |
| Lib Dem leaders have turned their fire on the Tories at their annual gathering in Bournemouth, arguing they cannot be trusted to tell the truth on spending and are posturing about planned cuts without being prepared to give details. | Lib Dem leaders have turned their fire on the Tories at their annual gathering in Bournemouth, arguing they cannot be trusted to tell the truth on spending and are posturing about planned cuts without being prepared to give details. |
| While saying he cannot rule out that the overall burden of tax will rise in the future, Mr Cable will say his latest measures are revenue neutral. | While saying he cannot rule out that the overall burden of tax will rise in the future, Mr Cable will say his latest measures are revenue neutral. |
| War of words | War of words |
| The Lib Dem conference, its last before the next general election, is being dominated by a debate on how far the party's proposed spending cuts should go and which areas should be protected from the squeeze that all parties accept is around the corner. | The Lib Dem conference, its last before the next general election, is being dominated by a debate on how far the party's proposed spending cuts should go and which areas should be protected from the squeeze that all parties accept is around the corner. |
| Labour and the Conservatives have been involved in a war of words over the scale of alleged cuts and tax increases each have in the pipeline. | Labour and the Conservatives have been involved in a war of words over the scale of alleged cuts and tax increases each have in the pipeline. |
| The Lib Dems have drawn up detailed proposals of their own for potential cuts, including scrapping Trident and other defence contracts, removing tax credits from higher earners, cutting NHS bureaucracy, freezing public sector pay and reforming public sector pensions. | The Lib Dems have drawn up detailed proposals of their own for potential cuts, including scrapping Trident and other defence contracts, removing tax credits from higher earners, cutting NHS bureaucracy, freezing public sector pay and reforming public sector pensions. |
| Mr Clegg has said action to reduce the national debt needs to be "savage and bold" but, under pressure from some in his party to soften his approach, he has said the party will fight equally fiercely to protect frontline services in health and education. | Mr Clegg has said action to reduce the national debt needs to be "savage and bold" but, under pressure from some in his party to soften his approach, he has said the party will fight equally fiercely to protect frontline services in health and education. |
| Student fees | Student fees |
| Controversy has surrounded the party's deliberation over student fees in England with Mr Clegg saying a long-standing pledge to abolish them may not be affordable over the next four years. | Controversy has surrounded the party's deliberation over student fees in England with Mr Clegg saying a long-standing pledge to abolish them may not be affordable over the next four years. |
| Mr Cable will tell party members that efforts to reduce record peacetime levels of debt will not be "easy or popular" and that tax increases as well as spending cuts may be needed. | Mr Cable will tell party members that efforts to reduce record peacetime levels of debt will not be "easy or popular" and that tax increases as well as spending cuts may be needed. |
| "It would be dishonest and unbelievable for me to say that taxes overall should never rise," he will say. "But the Liberal Democrats' starting point is to aim for fairer not higher taxes." | "It would be dishonest and unbelievable for me to say that taxes overall should never rise," he will say. "But the Liberal Democrats' starting point is to aim for fairer not higher taxes." |
| The party says its pledge to raise basic income tax thresholds to £10,000, which it argues will lift four million people out of tax, will cost £16bn. | The party says its pledge to raise basic income tax thresholds to £10,000, which it argues will lift four million people out of tax, will cost £16bn. |
| The new charges on properties valued above £1m will help pay for the measure alongside existing taxes on higher earners and a raft of green taxes. | The new charges on properties valued above £1m will help pay for the measure alongside existing taxes on higher earners and a raft of green taxes. |
| 'Arrogance' | 'Arrogance' |
| Mr Cable will seek to contrast the Lib Dems' "upfront" approach with that of the Conservatives and shadow chancellor George Osborne who he will say is hiding his true intentions from the electorate. | Mr Cable will seek to contrast the Lib Dems' "upfront" approach with that of the Conservatives and shadow chancellor George Osborne who he will say is hiding his true intentions from the electorate. |
| He told a fringe meeting on Sunday he believed the Tories would put VAT up to 22.5% or even 25% if they won the next election, arguing that they "had done it before" in 1981. | He told a fringe meeting on Sunday he believed the Tories would put VAT up to 22.5% or even 25% if they won the next election, arguing that they "had done it before" in 1981. |
| While the Conservatives have called for public spending to be reduced now, he will say they are also committed to policies - ranging from abolishing inheritance tax to building a high-speed rail network - that will cost more than £50bn in total. | While the Conservatives have called for public spending to be reduced now, he will say they are also committed to policies - ranging from abolishing inheritance tax to building a high-speed rail network - that will cost more than £50bn in total. |
| "The public doesn't need George Osborne's imaginary secret documents or conspiracy theories to work out that the public finances are in a bad shape." | "The public doesn't need George Osborne's imaginary secret documents or conspiracy theories to work out that the public finances are in a bad shape." |
| "No-one does political cynicism better than the Tories. They pose as tough guys cutting spending sooner and deeper than anyone else. | "No-one does political cynicism better than the Tories. They pose as tough guys cutting spending sooner and deeper than anyone else. |
| "But we have just exposed them as committed to a massive £53bn of extra spending - more than the total defence budget. | "But we have just exposed them as committed to a massive £53bn of extra spending - more than the total defence budget. |
| "If we did that we would be accused of being fantasists or dishonest. But these people are so arrogant they think they can cruise into Downing Street without anyone noticing." | "If we did that we would be accused of being fantasists or dishonest. But these people are so arrogant they think they can cruise into Downing Street without anyone noticing." |