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Nick Clegg calls for tax cuts for low earners Nick Clegg calls for tax cuts for low earners
(about 1 hour later)
Nick Clegg is to call for this month's Budget to include more tax cuts for those on low incomes.Nick Clegg is to call for this month's Budget to include more tax cuts for those on low incomes.
The deputy prime minister will also urge Chancellor George Osborne to introduce more measures to tackle tax avoidance by the richest in society.The deputy prime minister will also urge Chancellor George Osborne to introduce more measures to tackle tax avoidance by the richest in society.
Mr Clegg will address Liberal Democrat activists later at their spring conference in Gateshead.Mr Clegg will address Liberal Democrat activists later at their spring conference in Gateshead.
The Budget "must offer concrete help to hard-pressed, hard-working families", he will tell delegates.The Budget "must offer concrete help to hard-pressed, hard-working families", he will tell delegates.
He is expected to say Mr Osborne must make the wealthiest pay more to help fund tax cuts for the poorest.He is expected to say Mr Osborne must make the wealthiest pay more to help fund tax cuts for the poorest.
BBC political correspondent Norman Smith says senior Lib Dems are anxious to move the focus of the conference away from the controversial NHS Bill for England to their efforts to relieve the tax burden on those on low incomes. BBC chief political correspondent Norman Smith says senior Lib Dems are anxious to move the focus of the conference away from the controversial NHS Bill for England to their efforts to relieve the tax burden on those on low incomes.
'Time of need''Time of need'
Our correspondent says in his keynote speech Mr Clegg will call for the Budget on 21 March to include "real tax cuts at a time of real need" and will call for the income tax threshold to be raised. Our correspondent says that in his keynote speech Mr Clegg will call for the Budget on 21 March to include "real tax cuts at a time of real need" and will call for the income tax threshold to be raised further and faster than currently planned.
He will also call for more work to get rid of various tax loopholes used by the "super-rich".He will also call for more work to get rid of various tax loopholes used by the "super-rich".
Mr Clegg's speech is expected to set the tone for a crucial coalition Budget meeting on Monday.Mr Clegg's speech is expected to set the tone for a crucial coalition Budget meeting on Monday.
He will say the Lib Dems have secured concessions on tax from the Conservatives but admit there is "still more to be done".He will say the Lib Dems have secured concessions on tax from the Conservatives but admit there is "still more to be done".
"That is why the Budget in 10 days' time must offer concrete help to hard-pressed, hard-working families," he will add. I want the Budget to show how we are anchoring this government in the centre ground. Credible - but fair. "That is why the Budget in 10 days' time must offer concrete help to hard-pressed, hard-working families," he will say. "I want the Budget to show how we are anchoring this government in the centre ground. Credible - but fair."
"The last Labour Budgets led our nation to the economic precipice - fantasy Budgets issued by a party in denial, out of ideas and abdicating responsibility." The Lib Dem deputy leader, Simon Hughes, said the party's top priority was raising the income tax allowance, so that the first £10,000 of income is free from tax. The coalition has promised to do this by the next election, set for 2015, but Lib Dems want it to meet this goal earlier.
The Lib Dem deputy leader, Simon Hughes, said the party's top priority was raising the income tax allowance, so that the first £10,000 of income is free from tax. "The sooner we can get there, the sooner ordinary families have more money," Mr Hughes said.
"The sooner we can get there, the sooner ordinary families have more money," he said.
"And I'm talking about hundreds of pounds extra in their pocket, and what can they do with it? They can spend it on the children, and they can spend it in the High Street, they can spend it in their community - and that helps growth in the economy."And I'm talking about hundreds of pounds extra in their pocket, and what can they do with it? They can spend it on the children, and they can spend it in the High Street, they can spend it in their community - and that helps growth in the economy.
"What we don't want is for the government to concentrate on the 1%, the one in 100 people, who have very high incomes.""What we don't want is for the government to concentrate on the 1%, the one in 100 people, who have very high incomes."
'Tycoon tax''Tycoon tax'
The Lib Dems have floated a so-called "tycoon tax" over the weekend and they insist it will be considered at Monday's meeting.The Lib Dems have floated a so-called "tycoon tax" over the weekend and they insist it will be considered at Monday's meeting.
But plans for a so-called "mansion tax" are expected to be vetoed by the Tories. Energy and Climate Change Secretary Ed Davey told the BBC's Andrew Marr Show that the tax was a "really good idea" and was "consistent" with Lib Dem policy over the years to ensure the richest in society paid their "fair dues".
Asked whether this had effectively replaced the idea of a tax on high-value properties - the so-called "mansion tax" - which is opposed by many Conservative MPs, Mr Davey said that there are "many ways to skin a cat".
Mr Clegg will also hit out at tax avoiders during his speech, saying: "Too often, rather than paying their dues to the nation the wealthy pay their accountants to get them out of it.Mr Clegg will also hit out at tax avoiders during his speech, saying: "Too often, rather than paying their dues to the nation the wealthy pay their accountants to get them out of it.
"Avoiding tax, minimising the amount they have to contribute - that's the name of their game, boasting about the latest wheeze for moving an asset here, a property there, a loophole everywhere, all to make the tax bill lower.""Avoiding tax, minimising the amount they have to contribute - that's the name of their game, boasting about the latest wheeze for moving an asset here, a property there, a loophole everywhere, all to make the tax bill lower."
Mr Clegg's speech is not expected to include any major policy announcements but instead focus on the achievements of the coalition government and their ambitions for the future.Mr Clegg's speech is not expected to include any major policy announcements but instead focus on the achievements of the coalition government and their ambitions for the future.
He is expected to defend welfare reforms and say benefit claimants "owe it to the nation" to "strain every sinew to find a job".He is expected to defend welfare reforms and say benefit claimants "owe it to the nation" to "strain every sinew to find a job".
"That's why I am such a strong supporter of the basic idea driving the coalition's welfare reforms. To make work pay, boost independence and give real help finding a job, rather than leaving people stuck on the dole, enslaved by poverty," he will add."That's why I am such a strong supporter of the basic idea driving the coalition's welfare reforms. To make work pay, boost independence and give real help finding a job, rather than leaving people stuck on the dole, enslaved by poverty," he will add.