Tag Archives: red lines

Six red lines

Over the last week Nick Clegg has been drip-feeding his negotiating red lines. And here they are:

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We have another red line – raising the personal tax allowance to £12,500

In a move which will surprise nobody, another of those items from the front page of the manifesto has been announced as a red line in coalition negotiations with strings attached.

  • Significant progress must be made to getting to £12,500 in the first year of the next parliament, by increasing the allowance to £11,000 by April 2016.
  • This increase must be paid for fairly and cannot be funded through cuts to public services.
  • This has to be the number one tax priority of the new government. Any other tax priorities must be secondary to delivering the increase in the Personal Allowance.

So the Tories can forget any notion of cutting taxes for the rich until this has been fulfilled. What does this mean for Labour’s Mansion Tax, though? Surely you would want to bring that in at the same time? Actually, Danny Alexander clarified that. There’s not much love for Labour’s 10p tax band. You do wonder why they even thought about revisiting that one. Danny said:

Just two days ago the IFS described Labour’s proposed 10p tax rate as having a ‘miniscule effect’. Compare that to the millions of workers who will be getting their pay cheques today and will be £70 better off a month, thanks to the Liberal Democrats in government.

Nick Clegg said:

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Can Nick Clegg hold the line on not offering any red lines?

For years Lib Dem leaders have been plagued by the question, ‘Who will you support in the event of a hung parliament?’ In 2010, Nick Clegg straight-batted it pretty effectively, saying the Lib Dems would talk first to the party with the most seats and most votes. In 2015 he’ll stick to that trusty formula, with the added credibility of being able to say it’s exactly what he did last time – the voters remain the king-makers etc.

So unsurprisingly journalists have moved on. Their new favourite question, one we’ll hear more and more the close we get to May 2015, …

Posted in News | Also tagged , , and | 27 Comments
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