This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-19676263

The article has changed 10 times. There is an RSS feed of changes available.

Version 6 Version 7
Liberal Democrat conference: Clegg to call for tax on wealthy Lib Dem conference: Stick to bargain, Clegg warns Tories
(about 3 hours later)
By Justin Parkinson Political reporter, BBC News, in BrightonBy Justin Parkinson Political reporter, BBC News, in Brighton
Nick Clegg will attempt to rally the Liberal Democrats with a call for new taxes on the wealthy, as activists gather for the party's conference. Nick Clegg has warned the Conservatives to stick to their "side of the bargain" to keep the coalition government going.
He will urge lower taxes for workers doing a "proper shift", but higher rates for those "sitting on a fortune". The Liberal Democrat leader said Tory MPs could not "force a turbo-charged right-wing agenda on the country".
His party's calls for a one-off tax on "unearned wealth" have been rejected by its Conservative coalition partners. The party has threatened to veto "Conservative spending cuts" if some form of "wealth tax" is not adopted at the coalition's next spending review.
Meanwhile, Lib Dem deputy leader Simon Hughes refused to rule out a coalition with Labour in the future. But in a speech to the Lib Dem conference, Mr Clegg urged supporters against "squabbling" with the Tories.
Mr Clegg is under pressure amid growing disaffection among party members with the coalition and speculation about his future. Half-way through the intended life of the coalition, the deputy prime minister is under pressure, with his party activists showing unrest and opinion poll ratings remaining low.
'Hold our nerve' Members are unhappy that the coalition has abandoned the Lib Dems' long-cherished ambition of reforming the House of Lords, amid strong Conservative opposition.
Arriving at the conference in Brighton, he said: "It is a tough time economically for the country and it has been a challenging time for the Liberal Democrats politically. And earlier this week Mr Clegg apologised for failing to keep the pre-2010 general election promise not to raise student tuition fees.
"But I don't want anyone to be in any doubt: the Liberal Democrats are going to hold our nerve and see this through." Tax ultimatum
Around 200 protesters gathered on the seafront, holding placards opposing the coalition's spending cuts, and chanting: "Lib Dems. Shame on you." During the five-day annual conference in Brighton, Mr Clegg is keen to promote the Lib Dems as a party of "fairness" when it comes to taxation. One of the key themes is the promise to push for a "wealth tax".
Nick Clegg's part of the bargain is this: he won't go in to coalition with any party after the 2015 election that would cut spending but not simultaneously increase tax on "unearned" wealth. It is already Lib Dem policy to levy a 1% "mansion tax" on owners of expensive homes, starting at a threshold of £2m, and officials are looking at developing another proposal along these lines.
But the small print in Mr Clegg's pledge is important. He will remind his party members that the Lib Dems are outnumbered around the cabinet table - and if the rank and file want new wealth taxes introduced, they will have to go out and make the political argument for them. Nick clegg has got two jobs on his hands: to persuade Lib Dems he is still their man and to persuade voters that his party is still an influential part of the coalition.
Labour's Ed Balls has strongly hinted that Labour would be happy to introduce the Lib Dems' much-prized "mansion tax" on expensive homes. So there is at least the possibility that there might be a different coalition in prospect in future. He urged his supporters to show people that a coalition "works well for people", knowing that another version of it is a possibility after 2015.
But in the end, it is the verdict of the voters that will determine the make-up of the next government rather than the manoeuvring of the politicians. There were the also predictable, but necessary for any leader, attacks: on Labour, whom he said had a lot to apologise for (read into that 'It's not just me who has things to say sorry for'), and on Conservatives, some of whom were pushing a "turbo-charged right-wing agenda" (meaning the Lib Dems are agents of restraint).
Earlier in the week, the deputy prime minister made a filmed apology over his failure to honour a pledge to oppose an increase in university tuition fees in England. He also touched on the discipline needed to keep the coalition together, but was there a hint of a leader facing internal dissent?
He said the party regretted breaking its promise, made before the 2010 general election, and would learn from its mistakes. Opinion polls have suggested support has plummeted. Mr Clegg knows there are some here who are questioning his leadership. Discipline could keep him in his job.
One exhibitor's stand at the conference is selling mugs with a picture of Mr Clegg on one side and the words "I'm sorry" printed on the other. A spokesman said the party would refuse to sanction further cuts at the next spending review, expected to happen in 2014, unless some form of wealth tax was adopted by the coalition.
Speaking at a rally of activists later, Mr Clegg is due to defend the Lib Dems' record in government, saying the arrangement with the Conservatives has not been "easy" but is still "right" for the country. Mr Clegg said: "It's just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much while Russian oligarchs pay the same council tax as some of you do on a family home."
"We have avoided an economic catastrophe. We have steadied the ship. Now we must set it sailing," he will say. However, the Conservatives oppose the mansion tax, arguing that it is unfair and would hit many homeowners hard.
He will argue the government must go further in reducing the tax burden on low and middle-income families, building on a commitment to lift the threshold at which people start paying income tax to £9,205 by next April. In his speech to the conference's opening rally, Mr Clegg told delegates not to lose heart, saying: "We are proving that coalition works. But we need discipline. Yes, we must show people that we are different from our coalition partners.
"Liberal Democrats will not stop fighting to make this government and this country fairer," he will say. "But if all people see is squabbling then they will think coalition is a messy, incoherent thing."
"It's just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much while Russian oligarchs pay the same council tax as some people do on a family home." He also said: "We must show [people] it is a form of government that works well for them. If we don't we will have lost not only the argument for having Liberal Democrats in power but having a third party at all."
'Logic' Mr Clegg set party activists a target of distributing three million leaflets setting out the "fairer" tax agenda by the end of the year, asking them to "do your bit the old-fashioned way".
The Lib Dems have long called for higher taxes on "unearned wealth" - either through increases in capital gains tax or the introduction of a "mansion tax" on properties worth more than £2m or a one-off levy on the assets of the super-rich. The Lib Dems and the Conservatives are committed to working together until the end of this parliament, in 2015.
href="http://www.telegraph.co.uk/news/politics/9559501/Simon-Hughes-interview-Labour-would-find-us-good-partners.html" >In an interview with the Daily Telegraph, Simon Hughes said he intended to visit this year's Labour Party conference, adding: "If the electorate decided they wanted a government of the centre and centre-left, we would play our part in it." But Mr Clegg criticised the attitude of some of his coalition partners, saying: "My message to those Conservative backbench MPs who seem to think they have the right to force a turbo-charged right-wing agenda on our country is this: You didn't win the last election.
He also suggested the wealth tax might secure at least some Conservative support. "You do not have a majority. The British people have not given you the right to act like you do. We formed this coalition in good faith and for the good of the country at a time of crisis.
"There are certainly some Tories who see the logic of a fairer system in terms of property taxation," he tells the paper. "That required compromise on both sides. Liberal Democrats have kept our side of the bargain. You must too."
"The debate can't be entirely about cuts in benefit and the welfare budget - we have to address the tax issues and the wealth disparity issues." 'Independent yellow party'
So far the Conservatives have rejected the mansion tax idea and Mr Clegg will urge Lib Dem activists to exert pressure on Chancellor George Osborne by delivering three million "fair tax" campaign leaflets to homes by the end of the year. In recent weeks there has been speculation that the Lib Dems could do a deal with Labour in the event of another hung parliament. Shadow chancellor Ed Balls has demonstrated some warmth towards the wealth tax idea.
Laws speech In an interview with the Daily Telegraph, Lib Dem deputy leader Simon Hughes refused to rule out a coalition with Labour.
The Lib Dems were criticised for agreeing in March's Budget to reduce the 50% tax rate on top earners to 45% next April - with Labour saying it would benefit a small handful of millionaires when the majority were seeing declining living standards. Yet Mr Clegg used his speech to attack the main opposition party, telling delegates: "Labour have had a lot of fun at my expense in recent days because of the apology I made. There are some pretty big things I think people would like to hear them apologise for.
Also on Saturday, education minister David Laws will announce more support for schoolchildren from the most disadvantaged backgrounds through the Lib Dems' flagship "pupil premium" policy. "How about a personal apology from you, Ed Balls, for nearly bankrupting the country after you went on a prawn cocktail charm offensive in the City of London to let the banks off the hook? And how about, Ed Miliband, an apology, on behalf of your party, for dragging our country into an unjust and illegal war in Iraq?"
Funding for the scheme will rise from £600 to £900 per child next year, amounting to a £300,000 increase for a primary schools with 1,000 pupils in which a third qualify for the extra assistance. But he also urged Labour: "Tell us who you are. Tell the country what you are for, not just what you are against."
Mr Laws will say funding through the premium will also rise again in 2014, fully delivering on a 2010 manifesto pledge. A Lib Dem party spokesman denied this was an overture to Mr Miliband and his Labour frontbench team ahead of potential coalition-building.
The move comes days after Ofsted chief Sir Michael Wilshaw said the policy was having little impact on many schools. He told the BBC the Lib Dems were "fiercely independent", adding: "We are not part of the blue or the red party. We are an independent yellow party."
Activists will also hold debates on childcare and the future of the House of Lords. In his speech Mr Clegg announced that Chief Secretary to the Treasury Danny Alexander would take over the party's review of how to replace Trident, the UK's nuclear weapons system.
This follows the removal of Lib Dem defence minister Nick Harvey from the government in the recent reshuffle.