Lib Dem tax cuts will help those most in need (Norwich Liberal Democrats Online)

Norwich Liberal Democrats Online <info@norwichlibdems.org.uk>

Lib Dem tax cuts will help those most in need

September 22, 2008 11:01 AM

4p off income tax proposed by LibDems Brian Watkins, Leader of the Liberal Democrats on Norwich City Council, comments on tax proposals adopted by the party last week.

Lib Dem tax cuts will help those most in need

"In little over a year, the Prime Minister Gordon Brown has turned from Mr Boom to Mr Bean, and now finally to Mr Bust! The euphoria with which Labour entered the last party conference season has been replaced by the prospect of almost certain electoral defeat. Labour's mismanagement of the national economy is hitting us all hard, but it is people and families on low incomes who are particularly vulnerable. Energy bills have doubled in the last few years, food prices are up by 10% this year alone, and payroll taxes and council tax continue to increase inexorably. Here in Norwich, advice services such as the Citizens Advice Bureau find themselves overstretched as they try and provide much-needed assistance to those families with debt and mortgage repayment problems.

"Labour cannot hide behind the excuse of global economic trends. Its policies have been disastrous. Government spending has doubled from £300 to £600 million since Labour came to power, but inequality has worsened. It has doubled the 10p tax rate for the poorest in society and has failed to close tax loopholes for the fat cats and the very rich. True, the Liberal Democrats have advocated higher public expenditure at recent general elections, but we recognise that these are changing times and that new solutions are needed.

"That is why we are proposing an initial 4p cut in the basic rate of income tax to just 16%. We want a tax system that is truly fair and progressive, unlike the Conservatives whose only proposal is to cut inheritance tax for those at the top end of the scale. Our tax cuts will benefit those on low and average incomes, those who have the most to fear from the recent economic downturn. That will be of some comfort to people living in some of Norwich's most deprived areas like Mile Cross, North Earlham and Lakenham. The Liberal Democrats will also seek to cancel £20 billion of failing government programmes, and allocate that money to important spending priorities such as schools, hospitals, support for housing and personal care for elderly people. Any spare monies that remain (if indeed there are any) would then be channelled into extending our tax cuts still further.

"The Labour Party has lost the confidence of British people, but the Conservatives offer empty rhetoric and few solutions. It is time for a new start. Only the Liberal Democrats offer a practical package of proposals that will lead to a fairer and more just society across Britain. Labour can't, the Conservatives won't, but we will make it happen."

Brian Watkins

Leader of the Liberal Democrat Group

Norwich City Council