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Sir Menzies primed for tax battle | Sir Menzies primed for tax battle |
(10 minutes later) | |
Lib Dem leader Sir Menzies Campbell is striving to avoid a blow to his authority as he puts his tax plans to a crunch vote at the party's conference. | Lib Dem leader Sir Menzies Campbell is striving to avoid a blow to his authority as he puts his tax plans to a crunch vote at the party's conference. |
Opponents of his plans to ditch the party's commitment to a 50p top tax rate say they think they can win the vote in Brighton. | Opponents of his plans to ditch the party's commitment to a 50p top tax rate say they think they can win the vote in Brighton. |
Sir Menzies' plans would use new green taxes to fund cuts to income taxes. | Sir Menzies' plans would use new green taxes to fund cuts to income taxes. |
The tax debate comes as Charles Kennedy returns to the conference platform nine months after quitting as leader. | The tax debate comes as Charles Kennedy returns to the conference platform nine months after quitting as leader. |
Mr Kennedy, who led the party to its best election result in 80 years in 2005, stepped down and admitted a drink problem after many of his senior spokespeople said they would no longer serve under him. | |
But he is thought to still be popular with the wider party and is expected to receive a rapturous reception, although Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor. | |
'Moving beyond protest' | 'Moving beyond protest' |
The tax debate is the dominating policy issue at the conference in Brighton. | The tax debate is the dominating policy issue at the conference in Brighton. |
Ahead of the vote, Sir Menzies said "discipline and realism" were needed if the party was serious about government. | Ahead of the vote, Sir Menzies said "discipline and realism" were needed if the party was serious about government. |
"Substance has got to prevail over symbolism," he said. | "Substance has got to prevail over symbolism," he said. |
I think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Sketch: Sir Menzies questioned | I think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Sketch: Sir Menzies questioned |
"Because if we are serious and want to move from being a party of protest and a party of opposition, as we are, towards being a party of government, then we have to show we are serious about being a government." | "Because if we are serious and want to move from being a party of protest and a party of opposition, as we are, towards being a party of government, then we have to show we are serious about being a government." |
In the same session, North Bedfordshire Councillor Linda Jack indicated there was a concern among the "beard and sandals wing" that the party might be moving to the right. | In the same session, North Bedfordshire Councillor Linda Jack indicated there was a concern among the "beard and sandals wing" that the party might be moving to the right. |
But Sir Menzies insisted he was a "politician of the centre left" who wanted to make the tax system more redistributive. | But Sir Menzies insisted he was a "politician of the centre left" who wanted to make the tax system more redistributive. |
He wants to drop the past Lib Dem promise of a 50p tax on earnings over £100,000 and instead focus on "taxing pollution, not people". | He wants to drop the past Lib Dem promise of a 50p tax on earnings over £100,000 and instead focus on "taxing pollution, not people". |
Tax hikes for gas-guzzling cars and aviation would raise £8bn to help pay for the £18.7bn in tax cuts in other areas. | Tax hikes for gas-guzzling cars and aviation would raise £8bn to help pay for the £18.7bn in tax cuts in other areas. |
'Not soft on rich' | 'Not soft on rich' |
The Lib Dems say they would take two million people out of paying tax altogether by scrapping the 10p bottom tax rate and raising the threshold for national insurance contributions. | The Lib Dems say they would take two million people out of paying tax altogether by scrapping the 10p bottom tax rate and raising the threshold for national insurance contributions. |
There are sweeteners for middle earners too, through a 2% cut in the basic income tax rate, raising the threshold for the upper tax rate to £50,000 and cutting corporation tax by 1%. | There are sweeteners for middle earners too, through a 2% cut in the basic income tax rate, raising the threshold for the upper tax rate to £50,000 and cutting corporation tax by 1%. |
The Lib Dems say 90% of taxpayers will benefit from the package, with only the top 10% paying more. | The Lib Dems say 90% of taxpayers will benefit from the package, with only the top 10% paying more. |
They are pointing to comments from Robert Chote, director of the Institute of Fiscal Studies, who said: "Dropping the 50p tax rate wouldn't mean that the party had gone soft on the rich." | They are pointing to comments from Robert Chote, director of the Institute of Fiscal Studies, who said: "Dropping the 50p tax rate wouldn't mean that the party had gone soft on the rich." |
But Mr Chote said those households who do not currently pay tax would not gain, and could still be hit by higher green taxes. | But Mr Chote said those households who do not currently pay tax would not gain, and could still be hit by higher green taxes. |
Lib Dem MP and science spokesman Evan Harris is leading the challenge to the plans with an amendment which would impose a 50p tax rate on earnings over £150,000. | Lib Dem MP and science spokesman Evan Harris is leading the challenge to the plans with an amendment which would impose a 50p tax rate on earnings over £150,000. |
Mr Harris is claiming to have the support of a number of frontbench spokesman. | Mr Harris is claiming to have the support of a number of frontbench spokesman. |
Party campaigns chief Ed Davey said he expected all members of the Lib Dem "shadow cabinet" to vote for the tax package. | Party campaigns chief Ed Davey said he expected all members of the Lib Dem "shadow cabinet" to vote for the tax package. |