Lib Dems pledge financial discipline, greater fairness and a liberal economy

Liberal Democrat Deputy Leader, Sir Menzies Campbell, and Liberal Democrat Shadow Chancellor, Dr Vince Cable, will today promote a liberal and fair economy. This would mean improvements in health, education and the public services, the abolition of the unfair Council Tax, and strong economic growth, matched by tough financial discipline.

Research for the Liberal Democrats by NOP shows that:

The vast majority (75%) of voters would be in favour of a new 50% income tax rate on earnings over £100,000 if the money generated from this tax is used for;

abolishing tuition and top-up fees;

introducing free personal care for the elderly;

and keeping local taxes down.

Most voters (57%) recognise the poorest 20% of the population pay a bigger slice of their income in taxes than the richest 20%.

Over six out of ten (61%) voters who expressed an opinion said that a political party claiming, as the Conservatives do, to spend as much as Labour currently spends on schools, hospitals, police, defence, transport, and international development, but at the same time cut taxes through reducing waste would not be able to do this if they were to form the next government.

Sir Menzies Campbell said: "This is a prosperous country. Britain has the 4th largest economy in the world and we have world-class businesses and a world-class workforce.

"It's not just luck. Granting independence to the Bank of England has helped enormously. This of course was the policy of the Liberal Democrats in the 1992 and 1997 elections.

"Without the wealth that our economy generates, and tough financial discipline, we could not invest in our public services.

"The Liberal Democrat programme for government will be one of economic freedom, and one of social justice too. We want fairer taxation and the sound investment of taxpayers' money in the priorities that matter most to the people of Britain.

"We are straightforward and up front about the cost of our policies and how we would pay for them. We will publish detailed costings of our policies with our manifesto.

"Today we are publishing a headline summary of our plans which shows, by policy area, how much we will spend and how much we will save.

"The sums add up and the books are balanced.

"If we want a fairer Britain, it means fairer taxation. And it means spending government money differently."

Dr Vince Cable said: "I am a believer in the old adage you can't get something for nothing.

"That is why we have been explicit about the need to cut low priority programmes such as the Child Trust Fund, ID cards and industrial subsidies to pay for our priorities including higher pensions, 10,000 more police and lower class sizes.

"On taxation we have always been straightforward.

"By scrapping Council Tax and replacing it with a Local Income Tax a typical family would be better off by £450 a year.

"We are proposing only one tax raising measure for the highest one per cent of earners to pay for the abolition of student fees, free personal care and cuts in local tax. We believe these current charges are unfair, as do the vast majority of the British public.

"We have been able to set aside a prudent reserve equivalent to one pound in every ten we are spending.

"You can be assured that Liberal Democrat economic policy is financially rigorous."

Liberal Democrat Shadow Chief Secretary to the Treasury, David Laws said: "The Liberal Democrats have analysed Conservative spending plans. The analysis, which I am publishing today, shows that most of the existing James Report proposals are implausible and undeliverable.

"We don't believe these plans are achievable and nor do the majority of the British public.

"Our economic policies provide a real and positive alternative."