Lib Dems demand further taxation measures

Date: 27th November 2008

The Liberal Democrats have challenged the government to go further with its cuts to income taxation.

On Monday (November 24th), chancellor Alistair Darling announced a new 45p income taxation band for those in the UK earning £150,000 per annum or more.

But the centre left opposition party believes that the chancellor should have gone at least one step further, and implemented radical cuts to basic rate of income taxation.

Vince Cable, Treasury spokesman for the party, said: "Given the huge discounts already on offer in many British shops, this short-term VAT cut will make very little difference.

"The chancellor should be putting money directly back into people's pockets with a big permanent cut in income tax."

He added that this taxation cut should have been targeted at lower earners and financed by removing loopholes and reliefs in the system which only exist to benefit the very wealthy.

Shortly after the pre-budget report was announced, it was revealed, via a leaked document, that the government was considering raising the rate of VAT to 18.5 per cent or more.