TAX CUTS MUST BE LASTING, SAY LIB DEMS

Liberal Democrats in Newcastle have called for income tax cuts to help struggling families weather the recession.

Newcastle North Parliamentary spokesman Ron Beadle said that people in Newcastle have endured a year of rocketing fuel, transport and food prices and many were still out of pocket following the government's decision to double the starting rate of income tax.

"On Monday, the Chancellor presents his Pre-Budget Report to Parliament," said Ron.

"Liberal Democrats will be pressing for permanent tax cuts for people on low and middle incomes.

"We will be looking for radical changes in the tax system which lock in lower rates of income tax for good.

"To make these tax cuts lasting, they have to be funded. That means shifting the tax burden onto pollution and ending the tax perks and loopholes enjoyed by the highest earners.

"We are worried that the Government will simply introduce temporary tax cuts, paid for by borrowing, which will disappear once we start to come out of recession.

"Now is the time for a genuine and radical change to the tax system. Liberal Democrats will be pressing for that and, having spoken to many residents of Newcastle, I know it is what people here want.

"We believe, however, that an area where borrowing should be allowed is investment in new buildings and facilities that are needed. I am very keen to see people's homes properly insulated and more affordable homes built for people who need them.

"As well as boosting jobs and the economy, it will help to save money in the future."