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Sir Menzies primed for tax battle | Sir Menzies primed for tax battle |
(about 1 hour 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 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 stepped down after many of his senior spokespeople 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 stepped down after many of his senior spokespeople said they would no longer serve under him. |
He is thought to still be popular with the wider party, although Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor. | He is thought to still be popular with the wider party, although Lib Dem officials say they are not worried Sir Menzies could be overshadowed by his predecessor. |
Sir Menzies said: "I'm sure he will make his usually extremely accomplished and witty speech. It'll be a highlight of the conference." | |
'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. |
Sir Menzies told BBC Radio 4's Today programme he would be "disappointed" if he lost the vote because he believed the proposals were the best way forward for the party. | |
He said the outcome of the poll would become party policy but it was up to the Lib Dem policy committee to decide whether it should be in the manifesto. | |
Sir Menzies said the Lib Dems had to show they were serious about moving from being a party of opposition "towards being a party of government". | |
"In order to do that we have got to ensure our credibility, particularly in issues like taxation, is beyond reproach," he said. | |
I think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questioned | I think we have got a chance of winning Evan HarrisOrganiser of tax plan opposition Conference at-a-glance Sketch: Sir Menzies questioned |
But some fear the tax vote is a sign the party is moving to the right. | |
North Bedfordshire Councillor Linda Jack said the promise of a 50p top tax rate had been a clear policy which was easy for voters to understand. | |
Sir Menzies 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%. |
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 comments | |
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. |