Lib Dems call for tax cuts

Date: 30th October 2008

The Liberal Democrats have called on the government to cut taxation to help lower income households cope with the credit crunch.

Speaking at prime minister's questions yesterday (October 29th), the leader of the party Nick Clegg argued that Labour could raise money for taxation cuts by closing loopholes which only benefit the well-off.

Mr Clegg said: "[Cutting taxes] wouldn't require extra government borrowing, it is fair and it would be good for the economy.

"Why won't the prime minister give people on ordinary incomes some of their money back?"

Prime minister Gordon Brown replied by stating Labour had been closing off loopholes every year since they came to power in 1997.

He also pointed to the government's decision to give over 20 million people a taxation cut of £120 and increases in the winter fuel allowance for elderly individuals.

Business start-ups have until tomorrow (October 31st) to file a paper self-assessment tax return with HM Revenue and Customs.