BUDGET: WHERE WE WILL RAISE MONEY AFTER MAY 8

Alone among the major parties it seems the Liberal Democrats have set out clearly how we will raise the money to eradicate the current structural budget deficit by 2017-18.  This will be done through a mix of welfare savings, spending reductions and tax measures aimed at the wealthiest in our society.

Our plans involve:

• £12bn in departmental savings
• £3bn in welfare savings
• £5bn in tax rises 
• £7bn in reduced tax avoidance

Specific measures to balance the books unveiled today include:

• A new High Value Property Levy on properties worth in excess of £2m, raising £1bn
• Corporation Tax: limiting of interest deductibility, raising £800m
• Corporation Tax: restriction of loss relief, raising £650m
• An increase in charges for non-domiciled residents, raising £135m
• Universal Credit: transition measure on capital allowances, protections and the 30 hr rule, raising £420m 
• Greater restrictions on Capital Gains Tax exemptions, raising £700m
• Close alignment of dividend tax rates with marginal income tax rates for higher and additional rate taxpayers - raising £1.2bn 
• Cap working age benefits uprating at one per cent for two years, raising £160m 
• Removing Winter Fuel Payment and free TV licences from currently eligible higher rate taxpayers, raising £125m

This is detailed and demonstrates how the Lib Dems alone have concrete plans for paying off the deficit, allowing us to invest even more in our economy from 2017-18.  None of this will be easy but we are at least setting out the facts in advance.