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5 Feb 2015 12:38pm

Lib Dems propose £8bn tax increase on wealthy

The Liberal Democrats have proposed an £8bn tax increase on the wealthy in the next parliament, in order to relieve the pressure on public spending cuts

In a speech today, Lib Dem leader Nick Clegg said his party would hold a “balanced” approach to tax where the rich pay more in order to avoid increasing income tax, VAT or NICs.

a balanced approach to tax and spend that asks the wealthiest in our society to contribute a little more

Nick Clegg

The party has proposed an increased crack down on tax avoidance, as well as a levy on high value homes – different from Labour’s mansion tax – in order to raise the money.

Clegg said, “[A] sensible, balanced approach – this determination to finish the job in full and on time but to do so fairly – is only guaranteed if the Government remains anchored in the centre ground.

“Today we are setting out what that means in practice: a balanced approach to tax and spend that asks the wealthiest in our society to contribute a little more.

“Our plans mean there is no need to increase income tax, VAT or National Insurance rates.

“Yes, there will be more cuts - £16bn worth, including £4bn from the welfare budget – but that means that in the second half of the parliament we will be getting the national debt down and putting money back into our public services.”

Clegg’s second in command, Danny Alexander, said that it was only right for “those with the broadest shoulders” to pay more tax, explaining that a £30bn deficit reduction was needed in the first two to three years of the next parliament.

“We have to do that in a balanced way, we have to ask the wealthiest […] to make a contribution as well as about £16bn of savings on public spending and social security payments,” Alexander said.

Oliver Griffin

 

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