Nick Clegg calls for fairer taxes
Speaking at the Lib Dem’s spring conference yesterday, Deputy Prime Minister Nick Clegg said it was a ‘basic justice’ that the highest earners should pay the most tax.
In his keynote speech at the Gateshead conference, Mr Clegg said that the wealthiest people in society should pay more tax help fund tax cuts for the poorest.
Ahead of the budget on 21 March, he is calling for tax cuts for low-income households to be brought in more quickly.
The Income Tax Personal Allowance is due to increase to £8,105 in April but Mr Clegg wants it to be increased again next year.
Under current plans the first £10,000 of income will be free from tax by the next election in 2015, but Mr Clegg is pushing for this to happen much sooner.
He also wants stronger measures to be put in place to stop the richest people in the UK avoiding tax and promised to “call time on tycoon tax dodgers”.
“We need a tax system for a nation pulling together, not being pulled apart,” he said.
“That is why the Budget in 10 days’ time must offer concrete help to hard-pressed, hard-working families,” he continued.
The Lib Dems will discuss their proposed ‘tycoon tax’ at a coalition Budget meeting today.
Last week the Institute for Fiscal Studies (IFS) warned that changes to tax and benefits will cost families £530 a year.
Changes to tax credits and the withdrawal of child benefit from higher income families mean that families are experiencing the biggest attack on their income for 50 years, the IFS warned.
Child benefit will be withdrawn from anyone earning £42,475 or more, which is the level at which the 40 per cent income tax rate kicks in.