Wednesday, 15 April 2015


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.

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