Kennedy promises to ‘tell it straight’ over economy
Liberal Democrat leader Charles Kennedy today pledged his party would give voters a clear, rigorously costed economic plan to contrast with a Labour party that would “spin and obfuscate” and “unachievable” Conservative proposals.
Launching the Liberal Democrats’ alternative budget, Mr Kennedy admitted he had no great objections to the economic direction being steered by Chancellor Gordon Brown, saying: “We believe the economy is in reasonably good shape .we believe the economy can support the spending levels set out by the Chancellor.”
But he added: “If Labour are true to form, they will seek to duck the issue of taxation. They will spin and obfuscate. They will rule some things out but be coy about what they actually plan to do.”
The Conservatives’ plans would not stand up to the intense scrutiny inevitable in an election campaign because £8 billion of their proposed government savings were unachievable and taxes would in fact go up rather than fall under their plans.
In contrast, Mr Kennedy said, the Liberal Democrats would maintain their credibility by only promising what they could deliver.
“We’re going to tell it straight, we’re going to be specific, detailed and responsible, and I think that the country will respond accordingly.”
The Liberal Democrats’ alternative budget focussed on redistributing the burden of taxation so that it fell less on the poorest and most vulnerable members of society. Council tax would be scrapped and replaced with a progressive local income tax, and income tax would rise to 50 per cent on all earnings over £100,000.
In addition, the level at which homebuyers had to start paying stamp duty would be raised from £60,000 to £150,000 to take into account the massive house price inflation of recent years.
Mr Kennedy attacked Labour for creating a tax system that saw the poorest fifth of the country pay more of their income in tax (37.9 per cent) than did the richest fifth (35 per cent).
“In any tax reform there will be winners and losers – especially if the aim is redistribution – that’s not a word I shy away from,” he said.
“Under Tony Blair … four in ten pensioners are paying a 50 per cent marginal rate of tax on the money they earn. And almost two million poor families are paying a 60 per cent marginal rate.
“How can it make sense that the poorest in our society pay more of their income in tax than do the richest?”
