At last! I’ll write up a fuller analysis later, but for now, here’s the announcement that I, and many others in the party, have been waiting for. Let’s skip over the £700-and-a-pony-for-all headline. This, friends, is a liberal tax measure.
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.
This proposal will eventually be put to conference to replace the current 16p basic rate cut package. I had hopes that the eventual offer put to the electorate might be a bit of a basic rate cut and a bit of a personal allowance raise. I didn’t dare hope the party would actually go the whole hog.