“Weak, Weak, Weak”…

‘Fraid not Alix. That was the previous tax paper ‘Fairer, Simpler, Greener’. The most recent policy paper (somewhat disingenuously entitled ‘Reducing the Burden’) makes it clear that we are no longer committed to raising the threshold in this way. See: http://www.libdems.org.uk/media/documents/policies/Tax_policy_paper_120707.pdf.

Note in particular the following comments: “As a result of these changes [in Brown's 2007 Budget] the cost-effectiveness of
different income tax packages changes somewhat” and “The lower projected
rate of LIT [in our revised tax plans] is a result of the government’s abolition of the 10p starting rate for
income tax, which broadens the income tax base relative to our previous plans”.

In other words, despite our (justified) indignation over the doubling of the tax rate on the low earners, we are NOT committed to doing anything to address this injustice.

Instead, we promise to ‘spend’ all of the revenue from higher taxes elsewhere on the 4p cut in the basic rate – which, while very welcome, is in my opinion less of a priority than raising the personal allowance.

Of course, the reason we had to go down this route is our commitment to a local income tax of around 3.5p in the £ – without a corresponding cut in national income tax we would be raising marginal income tax rates on low/middle earners, which is clearly a bad idea.

Another reason why it’s high time we reconsidered the policy of replacing domestic property taxation with LIT. We also should be looking at ways to reduce the OVERALL tax burden in my view, although this may not be possible in the short term because of the dire state of the public finances.

The guidelines from whatever the department which may or may not still be called the DCA was called then..were very clear. The GLA is NOT a devolved assembly, it is a kind of local government above the boroughs.

Confused? It’s our ad hoc constitution, of course you’re confused!!

Should Gordon Brown have voted in last week’s elections?

Even if it were not illegal is it not incumbent on a PM to set a good example and not use his two votes in two elections that are for the same layer of Government?

Our tax policy, based on last summer’s paper, commits us to restoring the 10p band as was but making it a 0p band – i.e. that IS effectively an extension of the threshold – as well as lowering the basic rate to 16p. Starting rate for NICs would be raised correspondingly.

This costings summary provides a useful list (note this is from before the Local Income Tax was worked in, so the basic rate is still being reduced to 18p in this version):

http://www.libdems.org.uk/media/documents/policies/Tax%20Supplement.pdf

I rather agree with you on NMW, in the sense that it’s exactly the sort of thing the Tories will seize on if we’re not careful, and the fact that our *existing nine-month-old policy commitments* go much of the way towards producing the same effect will count for nothing.

Let’s take NMW earners out of tax NOW! That would be a good petition for Crewe.

That would be total rubbish.