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Wealthy should pay more tax, says Nick Clegg | Wealthy should pay more tax, says Nick Clegg |
(about 3 hours later) | |
Nick Clegg has suggested the UK's wealthiest people could be asked to pay more tax for a limited period. | Nick Clegg has suggested the UK's wealthiest people could be asked to pay more tax for a limited period. |
The deputy prime minister said that "to remain cohesive and prosperous as a society" those of "very considerable" wealth should contribute more. | The deputy prime minister said that "to remain cohesive and prosperous as a society" those of "very considerable" wealth should contribute more. |
He added that greater fairness was part of a "longer economic war". | He added that greater fairness was part of a "longer economic war". |
But Labour said Mr Clegg was taking British people "for fools" and the chancellor said he did not want to "drive away the wealth creators". | |
In his interview with the Guardian newspaper, Mr Clegg also hinted at a return to cabinet for former Treasury minister David Laws. | In his interview with the Guardian newspaper, Mr Clegg also hinted at a return to cabinet for former Treasury minister David Laws. |
Liberal Democrat Mr Laws resigned as chief secretary to the Treasury two years ago after admitting he claimed expenses to pay his partner rent. | Liberal Democrat Mr Laws resigned as chief secretary to the Treasury two years ago after admitting he claimed expenses to pay his partner rent. |
'Belt tightening' | 'Belt tightening' |
"I have never made any secret of the fact that I want to see David Laws back in government," Mr Clegg said. | "I have never made any secret of the fact that I want to see David Laws back in government," Mr Clegg said. |
He also promised the coalition would stand by its commitment not to build a third runway at Heathrow despite growing calls from Tory MPs for a change of heart. | He also promised the coalition would stand by its commitment not to build a third runway at Heathrow despite growing calls from Tory MPs for a change of heart. |
In the interview, Mr Clegg called for a "time-limited contribution" from the richest in society beyond his party's current policy for a "mansion tax" - taxes on properties above a certain value. | In the interview, Mr Clegg called for a "time-limited contribution" from the richest in society beyond his party's current policy for a "mansion tax" - taxes on properties above a certain value. |
"In addition to our standing policy on things like the mansion tax, is there a time-limited contribution you can ask in some way or another from people of considerable wealth so they feel they are making a contribution to the national effort?" he said. | "In addition to our standing policy on things like the mansion tax, is there a time-limited contribution you can ask in some way or another from people of considerable wealth so they feel they are making a contribution to the national effort?" he said. |
Mr Clegg said fairness was key to the next steps in tackling the "longer economic war". | Mr Clegg said fairness was key to the next steps in tackling the "longer economic war". |
"While I am proud of some of the things we have done as a government I actually think we need to really hard-wire fairness into what we do in the next phases of fiscal restraint," he said. | "While I am proud of some of the things we have done as a government I actually think we need to really hard-wire fairness into what we do in the next phases of fiscal restraint," he said. |
"If we don't do that I don't think the process will be either socially or politically sustainable or acceptable." | "If we don't do that I don't think the process will be either socially or politically sustainable or acceptable." |
'Failing plan' | 'Failing plan' |
During a visit to Sunderland, Chancellor George Osborne said: "I am clear that the wealthy should pay more, which is why in the recent Budget I increased the tax on very expensive property transactions. | |
"But we also have to be careful as a country we don't drive away the wealth creators and the businesses that are going to lead our economic recovery." | |
For Labour, shadow Treasury minister Chris Leslie said: "Nick Clegg is once again taking the British people for fools. He talks about a tax on the wealthiest, but he voted for the tax cut for millionaires in George Osborne's Budget. | For Labour, shadow Treasury minister Chris Leslie said: "Nick Clegg is once again taking the British people for fools. He talks about a tax on the wealthiest, but he voted for the tax cut for millionaires in George Osborne's Budget. |
"And he has supported a failing economic plan which has pushed Britain into a double-dip recession and is leading to borrowing going up by a quarter so far this year." | "And he has supported a failing economic plan which has pushed Britain into a double-dip recession and is leading to borrowing going up by a quarter so far this year." |
Senior Tory backbencher Bernard Jenkin, who chairs the Commons Public Administration Committee, told BBC Radio 4's Today programme: "If the politics of envy made a country rich, we would be a very rich country. | Senior Tory backbencher Bernard Jenkin, who chairs the Commons Public Administration Committee, told BBC Radio 4's Today programme: "If the politics of envy made a country rich, we would be a very rich country. |
"I think most rich people are contributing far more in tax than other people. | "I think most rich people are contributing far more in tax than other people. |
"I know this is not a fashionable view, but if you go on raising tax on rich people - and that's why, in agreement with Nick Clegg we have had to cut the top rate of tax from 50p to 45p - you drive wealth abroad. | "I know this is not a fashionable view, but if you go on raising tax on rich people - and that's why, in agreement with Nick Clegg we have had to cut the top rate of tax from 50p to 45p - you drive wealth abroad. |
"This is a pre-conference, easy-clap line." | "This is a pre-conference, easy-clap line." |
Conservative MP Mary Macleod told the BBC she did not think Mr Clegg's idea would be implemented. | Conservative MP Mary Macleod told the BBC she did not think Mr Clegg's idea would be implemented. |
"This is Nick Clegg saying let's try out a few ideas before party conference, probably will cheer up a few Lib Dems to talk about it. But it isn't government policy," she said. | "This is Nick Clegg saying let's try out a few ideas before party conference, probably will cheer up a few Lib Dems to talk about it. But it isn't government policy," she said. |
Discussions about tax and spending will take place before the chancellor's autumn statement. | Discussions about tax and spending will take place before the chancellor's autumn statement. |
Liberal Democrat House of Lords Treasury spokeswoman Baroness Kramer said Mr Clegg's proposals were not yet party policy, but would be discussed at the annual conference in Brighton next month. | Liberal Democrat House of Lords Treasury spokeswoman Baroness Kramer said Mr Clegg's proposals were not yet party policy, but would be discussed at the annual conference in Brighton next month. |
She told Today: "I would be very surprised if those ideas are not then shared at the cabinet level." | She told Today: "I would be very surprised if those ideas are not then shared at the cabinet level." |
But she added: "This has got to be worked through." | But she added: "This has got to be worked through." |