Tax threshold increase proposed by Lib Dems

Date: 15th March 2010

The Liberal Democrat Party has announced that Britain would benefit from a "fairer" tax regime should it come to power following the general election.

Among the proposals that would benefit taxpayers is a plan to increase the threshold which applies to income tax.

Under a Lib Dem government, taxpayers would be allowed to earn £10,000 before being subjected to income tax, said the party's Treasury spokesman Vince Cable.

The plans would save the average UK earner around £700 per year in taxes.

Mr Cable said: "The Liberal Democrat plans are the most radical, far reaching tax reforms in a generation and embody everything that we stand for: fairness, protecting the environment and rewarding hard work.

"We all know that the country is in for some tough times ahead. But we believe that it is simply not possible to address the problem of an unsustainable budget deficit without parallel action to rebalance the tax system and eliminate the unfairness at its core."