Campbell admits importance of tax vote
Menzies Campbell has admitted he is concerned about today’s expected clash with Liberal Democrat activists over the party’s taxation policies.
The party leader will face his first major test as plans to abolish the ten pence starting rate of tax, introduce more green taxes and scrap the Lib Dems’ previous policy of a top 50p tax rate are debated at annual conference in Brighton.
Yesterday Sir Menzies acknowledged that his authority was on the line with the proposals, responding to an interviewer’s comment about his closing speech on Thursday with the quip: “Its Tuesday I’m worried about.”
Last night three members of the Lib Dem front bench came out in support of the proposals, which are based on recommendations by the party’s tax commission.
Environment spokesman Chris Huhne said the package “tackles climate chaos and promotes fairness without hitting hard work and risk taking”, while Lib Dem president Simon Hughes said it was “strong and convincing”.
Home affairs spokesman Nick Clegg added: “This package combines social justice, environmental sustainability and a need to reward, not thwart, aspiration.”
However, Evan Harris MP, who is orchestrating the campaign to keep the Lib Dems’ former policy of a 50p top rate of tax, revealed that the tax commission was split on the proposal.
Mr Hughes also told reporters that he was only opposing the 50p proposals because of the imposition of a party whip on members of the Lib Dem front bench.
In a question and answer session yesterday, Sir Menzies stressed his “passion” for a redistributive tax system, and argued that the commission’s plans to cut the ten pence starting rate of income tax would take two million people out of the tax system.
He accepted there had long been tensions between social and economic liberals – those who believed in redistribution and those who believed in promoting a free market – but said it was “my task to resolve that tension”.
“Social and economic liberals are part of the same whole. You need economic liberalism to create the thriving economy that can provide the funds to meet our social obligations,” Sir Menzies told delegates.
The leader’s chief of staff, Norman Lamb MP, earlier also sought to pre-empt any attack on the proposals from delegates by proclaiming them as one way in which the Lib Dems could demonstrate their green credentials above and beyond other parties.
During a lunchtime fringe meeting, Mr Lamb was asked how Lib Dem activists could explain their plans to up the tax on 4×4 vehicles and introduce a tougher new aircraft tax to voters who “like cheap holidays, and drive their kids to school in big cars”.
He replied: “I think the electorate is changing. People understand more than ever before that we have some fundamental changes to make, and so green taxes will strike a chord more than ever before.
“The package tomorrow makes it very clear that people on low and middle incomes will get very significant tax cuts.
“And it all comes down to the capacity of the party to go out and campaign on these and explain that with a Liberal Democrat government, people would be freer to use their money as they choose – and they can choose to behave in a less polluting way.”
