Labour budget is just a sticking plaster for the election say Lib Dems
March 16, 2005 6:44 PM
Lib Dem Shadow Chancellor Vince Cable responds to the budget
The Chancellor has delivered a budget which is little more than a sticking plaster for the General Election. He is offering small bribes to people that Labour has let down, but no long-term solutions, according to Lib Dem Shadow Chancellor, Vince Cable. He outlines the parties response below, for more information visit the national party website www.libdems.org.uk.
Under Labour's plans Britain's pensioners continue to receive poverty pensions.
THE REAL ALTERNATIVE ON PENSIONS:
A Citizen's Pension that ends the discrimination against women and ends poverty pensions.
It is expensive, but it is a matter of priority - we'd start with the poorest and most vulnerable - those over 75.
Our fully costed package would give over 75s a pension rise of over £100 a month.
THE REAL ALTERNATIVE TO THE COUNCIL TAX:
The tax rise the Chancellor didn't mention is Council Tax revaluation, which is due to start on 1st April. The Welsh experience suggests over 7 million people in England will pay significantly more.
We'd scrap the Council Tax, and replace it with a fair tax based on the ability to pay.
Half would pay less. A quarter would be unaffected. A quarter would pay a bit more.
A typical family would be £450 a year better off. Half of all pensioners wouldn't pay at all.
THE REAL ALTERNATIVE ON TAXATION:
At the last General Election Labour promised they wouldn't raise income tax - so they raised National Insurance instead.
The Chancellor is reluctant to impose 50% tax rate on 400,000 top earners but happy to see 1.7 million low paid families pay over 60p in tax for every pound earned.
Having already done so in Scotland, we would abolish top-up and tuition fees and provide free personal care for the elderly - as well as keeping down local taxes.
These three measures would be paid for by the introduction of a top rate of tax capped at 50% for every pound earned over £100,000.
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