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Sir Menzies set for key tax vote Sir Menzies wins crunch tax vote
(10 minutes later)
Lib Dem leader Sir Menzies Campbell is striving to avoid a blow to his authority as his tax plans go to a crunch vote at the party's conference. Lib Dem leader Sir Menzies Campbell has won a crunch vote on his tax plans at the party's conference 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. The poll prevented an embarrassing defeat for Sir Menzies in the first major test of his authority as leader.
Sir Menzies wants to use new green taxes to fund cuts in income taxes. After a two-hour debate, the Lib Dem leadership saw off an attempt to stop the party dropping its previous pledge for a 50p top tax rate.
Delegates also approved plans to use new taxes on "gas-guzzling" cars and aviation to pay for income tax cuts.
The tax debate comes as Charles Kennedy returns to the conference platform eight months after quitting as leader.The tax debate comes as Charles Kennedy returns to the conference platform eight months after quitting as leader.
Mr Kennedy, who led the party to its best election result in 80 years in 2005, admitted a drink problem and quit after several frontbenchers said they would no longer serve under him.Mr Kennedy, who led the party to its best election result in 80 years in 2005, admitted a drink problem and quit after several frontbenchers said they would no longer serve under him.
He is expected to win a warm reception from delegates but Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor.He is expected to win a warm reception from delegates but Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor.
'Moving beyond protest''Moving beyond protest'
The Lib Dem leader told BBC Radio 4's Today programme he would be "disappointed" if he lost the tax vote, which has dominated debate in Brighton. Lib Dem tax plans have dominated debate at the conference but amendments to the leadership's package were "clearly" defeated on a show of voting cards.
He said the vote result - due shortly before 1300 BST - would become party policy but it was up to the Lib Dem policy committee to decide whether it should feature in the next election manifesto.
HAVE YOUR SAY The Lib Dems must be clear about their policies, not like Labour and the Tories who dodge hard questions Bruce Castle, London Send us your commentsHAVE YOUR SAY The Lib Dems must be clear about their policies, not like Labour and the Tories who dodge hard questions Bruce Castle, London Send us your comments
Opposition to the leadership plans is being led by party science spokesman Evan Harris. Opposition to the leadership plans was led by party science spokesman Evan Harris.
He is proposing an amendment which would promise a 50p tax rate on earnings over £150,000, with the money used to take another 300,000 people out of paying tax. He proposed an amendment which would promise a 50p tax rate on earnings over £150,000, with the money used to take another 300,000 people out of paying tax.
'Symbolism''Symbolism'
Lib Dem deputy leader and Treasury spokesman Vince Cable opened the debate in a packed conference hall. Lib Dem deputy leader and Treasury spokesman Vince Cable led the debate in a packed conference hall.
He accused Mr Harris of taking the "popular bits" out of the Lib Dem tax pledges made at the last election.He accused Mr Harris of taking the "popular bits" out of the Lib Dem tax pledges made at the last election.
"I ask you to choose substance and seriousness over symbols and sentiment," said Mr Cable."I ask you to choose substance and seriousness over symbols and sentiment," said Mr Cable.
I support Ming Campbell, we all do, but this not just his party, it's yours Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questionedI support Ming Campbell, we all do, but this not just his party, it's yours Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questioned
Mike Ash, a councillor from Penrith, said keeping the 50p top rate would leave voters with the impression the party was "tax happy".Mike Ash, a councillor from Penrith, said keeping the 50p top rate would leave voters with the impression the party was "tax happy".
But Dr Harris accused the leadership of discarding a policy for the sake of the media.But Dr Harris accused the leadership of discarding a policy for the sake of the media.
"That's the symbol, that's the spin, that's the gesture," he said."That's the symbol, that's the spin, that's the gesture," he said.
On the leadership question, Dr Harris told delegates: "I support Ming Campbell, we all do, but this not just his party, it's yours."On the leadership question, Dr Harris told delegates: "I support Ming Campbell, we all do, but this not just his party, it's yours."
'Slippery slope''Slippery slope'
Another backer of the 50p rate, Arnie Gibbons, a member of the party's tax commission, said: "We don't have that many populist policies, let's not abandon one of the best."Another backer of the 50p rate, Arnie Gibbons, a member of the party's tax commission, said: "We don't have that many populist policies, let's not abandon one of the best."
Outside the hall, Lib Dem MP Phil Willis told the Yorkshire Post the leadership's tax plan could start the party on "a slippery slope towards more right-wing draconian policies".Outside the hall, Lib Dem MP Phil Willis told the Yorkshire Post the leadership's tax plan could start the party on "a slippery slope towards more right-wing draconian policies".
Sir Menzies wants to focus on "taxing pollution, not people".Sir Menzies wants to 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.
'Hitting the rich''Hitting the rich'
The Lib Dems say they would take two million people out of paying income tax by scrapping the 10p bottom rate and raising the threshold for national insurance contributions.The Lib Dems say they would take two million people out of paying income tax by scrapping the 10p bottom rate and raising the threshold for national insurance contributions.
There would also be a 2% cut in the basic income tax rate, a higher upper rate threshold of £50,000 and cutting corporation tax by 1%.There would also be a 2% cut in the basic income tax rate, a higher upper rate threshold of £50,000 and cutting corporation tax by 1%.
The Lib Dems say 90% of taxpayers will benefit from the plans, with only the top 10% of earners paying more.The Lib Dems say 90% of taxpayers will benefit from the plans, with only the top 10% of earners paying more.
The package is meant to have no overall effect on tax revenues.The package is meant to have no overall effect on tax revenues.
But critics question whether there will be a black hole in the sums if the green taxes do succeed in changing people's polluting behaviour - something Lib Dem officials deny.But critics question whether there will be a black hole in the sums if the green taxes do succeed in changing people's polluting behaviour - something Lib Dem officials deny.