LIB DEMS CALL FOR TAX BILL CUT

The Liberal Democrats will fight the next General Election with a pledge to cut income tax bills by £700 for people on low and middle incomes.

The party will promise to raise the income tax personal allowance to £10,000 by closing tax loopholes exploited by big businesses and the wealthy.

Measures which will be used to pay for this proposed increase in the personal allowance include:

:: Restricting tax relief on pension contributions to the basic rate

:: Taxing Capital Gains at marginal income tax rates, allowing for indexation and retirement relief

:: Tackling Stamp Duty Land Tax avoidance and Corporation Tax avoidance

:: Subjecting benefits in kind to National Insurance Contributions as well as income tax and applying National Insurance to multiple jobs

:: Switching aviation taxes from per person to per plane and increasing taxation on non lifeline domestic flights.

Ron Beadle, Liberal Democrat Parliamentary spokesman for Newcastle North, said: "Thousands of families on low income in Newcastle will benefit from this tax cut. They will be lifted out of income tax altogether.

"People earning over £10,000 will pay £700 less income tax a year, paid for by ending the loopholes and tax avoidance schemes used by the wealthy and big corporations.

"Ordinary people are struggling because of the recession. Now is the time to make a far reaching and permanent change to the tax system that benefits those on low and middle incomes.

"Liberal Democrats want to see more money left in the pockets of ordinary people rather than taken away by the Government.

"Here in Newcastle, Liberal Democrats will be going into the General Election committed to a lasting income tax cut."