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-31141549
The article has changed 6 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Lib Dems propose £8bn in tax rises to reduce deficit | Lib Dems propose £8bn in tax rises to reduce deficit |
(about 3 hours later) | |
The Liberal Democrats would increase taxes on the better-off to raise £8bn and sign up to £16bn spending cuts, Nick Clegg has said. | The Liberal Democrats would increase taxes on the better-off to raise £8bn and sign up to £16bn spending cuts, Nick Clegg has said. |
Setting out his party's financial plans, Mr Clegg said wealthy individuals and big business did not always pay their "fair share". | Setting out his party's financial plans, Mr Clegg said wealthy individuals and big business did not always pay their "fair share". |
He vowed to balance the books by 2017-18 - the same date as the Tories. | He vowed to balance the books by 2017-18 - the same date as the Tories. |
But while the Tories say they would not raise taxes, Mr Clegg plans a mix of spending cuts and tax rises. | But while the Tories say they would not raise taxes, Mr Clegg plans a mix of spending cuts and tax rises. |
Labour says it will achieve a surplus by 2020, the end of the next Parliament. | Labour says it will achieve a surplus by 2020, the end of the next Parliament. |
'Fair share' | 'Fair share' |
In a speech in London, Mr Clegg said his party would raise benefits - excluding pensions and disability payments - by 1% a year. | In a speech in London, Mr Clegg said his party would raise benefits - excluding pensions and disability payments - by 1% a year. |
However, as part of spending cuts, £4bn would be taken from the welfare budget. Chief Secretary to the Treasury Danny Alexander said between £10bn and £12bn would come from cuts to government departmental spending. | |
A "high value property levy" - formerly called a "mansion tax" - would raise up to £1.5bn, and a crackdown on tax avoidance would be expected to save £6bn. | A "high value property levy" - formerly called a "mansion tax" - would raise up to £1.5bn, and a crackdown on tax avoidance would be expected to save £6bn. |
The deputy prime minister said: "It is incomprehensible to most people that you would try and balance the books without asking for a contribution from the wealthiest people in our country. | The deputy prime minister said: "It is incomprehensible to most people that you would try and balance the books without asking for a contribution from the wealthiest people in our country. |
"Liberal Democrat plans are for a bigger tax contribution from those who can afford to pay - the wealthiest individuals and big businesses which are not always paying their fair share." | "Liberal Democrat plans are for a bigger tax contribution from those who can afford to pay - the wealthiest individuals and big businesses which are not always paying their fair share." |
"Our plan means that in the last year of the next Parliament, we will cut £38bn less than the Conservatives. And we will have borrowed £70bn less than Labour." | "Our plan means that in the last year of the next Parliament, we will cut £38bn less than the Conservatives. And we will have borrowed £70bn less than Labour." |
'Kooky' | |
Mr Clegg accused the Conservatives of offering tax cuts they knew they could not deliver and seeking to shrink the size of the state for ideological reasons. | |
"The Conservatives are coming up with kooky, made-up figures. It is nonsense. They know it is nonsense. It is implausible and undeliverable," he said. | |
Meanwhile, Labour were "sticking their heads in the sand" in relying on increased borrowing, he said. | |
"Labour will not balance the books until the end of the next parliament - that's more years of spending restraint than necessary, supplemented with higher and higher borrowing. | |
Mr Clegg said Labour's plan would mean borrowing £70bn more than the Lib Dem plan, and spending around £4bn more on paying the interest on debt - "Money that could be spent on schools and hospitals instead." | |
However, Prime Minister David Cameron said the Liberal Democrat plans would see "quite substantial tax increases that would hit hard-working people." | |
He said the Conservative Party wanted to "eradicate" the remaining deficit, and "to start to put money aside during years of growth for a rainy day". | |
The election would come down to a choice between economic "competence" from the Conservatives and "chaos" from a prospective Labour government," he added. | |
Chris Leslie MP, Labour's shadow chief secretary to the Treasury, said that the Liberal Democrats could not be trusted. | |
"They broke their promise not to raise VAT on families while backing the Tories in giving millionaires a huge tax cut," he said. | |
"And they signed off risky and extreme Tory plans in the Autumn Statement to take public spending as a share of national income back to 1930s levels." | |
Labour will make "sensible spending cuts in non-protected areas," but we will also reverse the coalition government's "£3bn tax cut for the top 1% of earners." | |
Lib Dem tax plans | |
The Lib Dem plans did not require any increase in the "headline" rates of taxation - income tax, national insurance, VAT and corporation tax, Mr Clegg said. | |
The Lib Dems are pledging to protect low-and middle-income earners as well as spending on education, the National Health Service and foreign aid. | The Lib Dems are pledging to protect low-and middle-income earners as well as spending on education, the National Health Service and foreign aid. |
There would also be an increase in the banking levy and changes to the tax deductibility of interest payments. | There would also be an increase in the banking levy and changes to the tax deductibility of interest payments. |
Mr Clegg's announcements come after the Institute for Fiscal Studies (IFS) said the worst of the UK's spending cuts was still to come. | Mr Clegg's announcements come after the Institute for Fiscal Studies (IFS) said the worst of the UK's spending cuts was still to come. |
Its Green Budget, which looks at options and issues ahead of next month's Budget, says the UK's finances still have "a long way to go". | Its Green Budget, which looks at options and issues ahead of next month's Budget, says the UK's finances still have "a long way to go". |
The IFS has also said voters face a "stark choice" between the parties in May's general election. | The IFS has also said voters face a "stark choice" between the parties in May's general election. |