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UKIP sets out election strategy with plans to cut taxes UKIP sets out election strategy with plans to cut taxes
(about 11 hours later)
UKIP has set out the tax strategy that will be part of its manifesto in next year's general election.UKIP has set out the tax strategy that will be part of its manifesto in next year's general election.
The party will enter the race with a pledge to cut taxes and take low earners out of income tax entirely.The party will enter the race with a pledge to cut taxes and take low earners out of income tax entirely.
MEP Tim Aker, head of the party's policy unit, told current affairs magazine Prospect the plans were part of a "blue-collar platform". Leader Nigel Farage said its policies would ensure that people "get out and spend" and "actually help to get the economy going".
UKIP would also make the 40p rate the top rate of tax, which people would start to pay once they earned £45,000.UKIP would also make the 40p rate the top rate of tax, which people would start to pay once they earned £45,000.
"It's a blue-collar platform, but for people that want to aspire to achieve absolutely anything," Mr Aker said. Mr Farage confirmed last month that the party was rethinking its economic policies and that it no longer backed a single rate of income tax.
UKIP leader Nigel Farage confirmed last month that the party was rethinking its economic policies and that it no longer backed a single rate of income tax. In 2010, when he was not leader, it supported a "flat tax", which it said would be set at 31% and would be achieved by merging income tax and national insurance.
In 2010, the party supported a so-called "flat tax", which it said would be set at 31% and would be achieved by merging income tax and national insurance. 'Worthwhile'
But Mr Farage last month said he believed an appropriate top rate of tax was 40%. But Mr Farage last month said he believed an appropriate top rate of tax was 40%. He also announced that no-one earning the minimum wage or below should pay any tax on their earnings.
He also announced that no-one earning the minimum wage or below should pay any tax on their earnings. Mr Farage told the BBC News Channel: "The most important thing is raising the threshold at which people start to pay tax."
In July, Labour said the wealthiest should contribute more through a hike in the top rate of tax to 50p. He added: "If you do that whilst at the same time controlling the over-supply of labour that's coming into Britain from many parts of Europe, not only do you get people back into work, you make it worthwhile for people to get off benefits."
'Target foreign aid' Mr Farage said full details of how UKIP would pay for the tax changes would be outlined at the party's annual conference next month.
But David Cameron said the Conservative Party could make no promises about raising the thresholds for the top rate of tax, which currently kicks in at £41,865. He added: "When you leave people more money in their pocket they actually go out and spend it in the economy. That actually helps to get the economy moving."
In its general election manifesto, the Lib Dems proposed a rise in the tax-free personal allowance to £12,500.
Meanwhile, Mr Aker also told Prospect magazine that UKIP's election manifesto would include plans to cut government spending, saying foreign aid was "an obvious target".
He outlined plans to ensure people who have worked for a long time before becoming unemployed would be entitled to a higher job seeker's allowance.
Mr Aker told the magazine that UKIP was "firmly against the bedroom tax" but supported the coalition's policy of a benefits cap.
The party would also block new migrants from claiming benefits until they had paid tax and national insurance for five years.The party would also block new migrants from claiming benefits until they had paid tax and national insurance for five years.
A pledge to abolish the Climate Change Act was also in place, Mr Aker said. In July, Labour said the wealthiest should contribute more through a hike in the top rate of tax to 50%.
But David Cameron said the Conservative Party could make no promises about raising the thresholds for the top rate of tax, which currently kicks in at £41,865.
In their 2010 general election manifesto, the Lib Dems proposed a rise in the tax-free personal allowance to £12,500.