New Lib Dem Leader Speaks Out On UK Taxes

by Jason Gorringe, Tax-News.com, London

07 March 2006

Delivering his debut speech as Liberal Democrat leader at a party conference on Sunday, Sir Menzies Campbell warned that the Lib Dems should not place too much emphasis on the party's flagship policy of introducing a 50% top tax rate.

According to Reuters, which reported on the conference, he stated that:

"We should avoid being fixated on one tax rate. You cannot create a valid tax policy based on a single tax rate any more than you can have a valid defence policy based on a single weapons system."

In order to create a more equitable tax system, the new Lib Dem leader proposed that:

"First, the tax burden must be lighter for those on lowest incomes. Second, the tax system must prove incentives to companies and individuals to behave in a way that sustains our environment."

"Third, the system must be simple - it must support enterprise and must not stifle it."

Sir Menzies also recommended an increase in tax on air travel. Reports in the UK media following his speech have cited Liberal Democrat sources as suggesting that his environmental agenda could stretch to the imposition of higher petrol duties, and potential increases in tax on domestic fuel.

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