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Sir Menzies faces battle over tax | Sir Menzies faces battle over tax |
(40 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 wants to use new green taxes to fund cuts in 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 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. |
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 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. | 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. |
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 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. |
Opposition to the leadership plans is being led by party science spokesman Evan Harris, who says he can carry the vote. | |
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. | |
'Symbolism' | |
Lib Dem deputy leader and Treasury spokesman Vince Cable opened 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. | |
"I ask you to choose substance and seriousness over symbols and sentiment," said Mr Cable. | |
But backing Mr Harris' amendment, Arnie Gibbons said it was those wanting to drop the top tax rate plan who were focusing on symbolism. | |
"We don't have that many populist policies, let's not abandon one of the best," he said. | |
"The 50p tax rate is not a gesture but abandoning it would be." | |
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 |
Sir Menzies wants to drop the previous promise of a 50p tax on earnings over £100,000 and 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 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 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 | 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 insist the package will not hit the middle classes disproportionately, saying 90% of taxpayers will benefit, with only the top 10% of earners paying more. | |
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. | |