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Sir Menzies primed for tax battle Sir Menzies faces battle over tax
(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 wants to 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.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 quit after several frontbenchers 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 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.
Sir Menzies said: "I'm sure he will make his usually extremely accomplished and witty speech. It'll be a highlight of the conference."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 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.
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 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.
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".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."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 questionedI 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. Some activists 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. North Bedfordshire Councillor Linda Jack said the promise of a 50p top tax rate had been 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". Sir Menzies wants to drop the previous promise of a 50p tax on earnings over £100,000 and 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 income tax by scrapping the 10p bottom 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 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
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." Lib Dem environment spokesman Chris Huhne denied the overall package would hit the middle classes or the poor.
But Mr Chote said those households who do not currently pay tax would not gain, and could still be hit by higher green taxes. Only the top 10% of earners would be losers, he said.
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 Huhne said the opposition amendment would undermine the "simplicity" of the plan, although critics say it is too complicated.
Mr Harris is claiming to have the support of a number of frontbench spokesman. 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 change behaviour.
Party campaigns chief Ed Davey said he expected all members of the Lib Dem "shadow cabinet" to vote for the tax package. Mr Huhne insisted that experience from abroad showed total tax receipts would not fall, although there was a "level of uncertainty" about what would happen in Britain.
Lib Dem science spokesman Evan Harris is leading opposition to the plans with an amendment which would impose a 50p tax rate on earnings over £150,000.
Mr Harris claims to have the support of a number of frontbench spokesman and says they can win the vote.