Tim Ball

Liberal Democrat Leader Nick Clegg today called for tax cuts to help hard-pressed families through the financial crisis.

The collapse in the banking system is already having an impact on people’s everyday lives, with job losses, increased borrowing costs and rising repossessions. As well as providing relief to families, a tax cut would act as a stimulant to consumer spending.

The Liberal Democrats would cut taxes for those on low and middle incomes, to be paid for by cracking down on tax avoidance and loopholes which benefit the wealthiest, including:

·    Stopping businesses using offshore funds to avoid stamp duty
·    Taxing capital gains as income
·    Abolishing upper rate tax relief on pensions

Commenting, Nick Clegg said:

“It’s time for the Government to help the millions of struggling families, not just the banks.
 
“Low and middle income families need tax cuts now to help them through the recession. These could be funded by simple measures to crack down on tax avoidance and by making the system fairer.
 
“Businesses would also benefit, as consumer spending will be kick-started where we need it most - from people on low and middle incomes.
 
“The financial crisis is having an impact far beyond the City. Those in fear of losing their jobs and having their homes repossessed are justifiably anxious about the tough months ahead.
 
“It simply isn’t fair that ordinary people are feeling the pinch whilst the Government allows those that can afford expensive accountants to make a mockery of the tax system.”