Clegg to set out Lib Dem deficit plan

Written By Unknown on Minggu, 12 April 2015 | 15.36

Nick Clegg

Nick Clegg is to spell out Lib Dem plans to eliminate the deficit by 2017/18, insisting there is "light at the end of the tunnel" .

His party would cut less than the Tories and borrow less than Labour, he will say.

Lib Dem economic plans have "a heart as well as a brain," he will say.

It comes as the Tories announce plans to cut inheritance tax on family homes and Labour says it would ramp up fines on tax avoiders.

The Lib Dems say they would get rid of the deficit through raising taxes by an additional £12bn, cutting public spending by £12bn and cutting welfare by £3bn.

Mr Clegg will challenge the other parties to spell out in similar detail how they would balance the nation's books.

He will acknowledge that the two years following 7 May's general election will not be easy.

But he will claim that Lib Dems are the only party offering a "balanced" programme to pay down the remaining deficit, while still finding money to raise income tax thresholds to £11,000 and invest in the NHS.

The Lib Dem deficit-reduction plans include:

  • Removing winter fuel payments and free TV licences from wealthy pensioners, saving £125m
  • Keeping the 1% cap on working-age benefit rises for the next two years, raising £160m
  • Abolishing tax breaks for workers who give up employment rights, to raise £200m
  • Placing new restrictions on capital gains tax worth £700m
  • Aligning dividend tax rates with income tax for higher and top rate taxpayers, bringing in £1.2bn

Mr Clegg will say: "We have a plan to build a stronger economy and a fairer society, which means we will cut less than the Conservatives and borrow less than Labour.

"It's a plan to protect our economy and invest in our schools, hospitals and public services ... a plan with a heart as well as a brain."

He will add: "I can't promise you the next two years will be easy. Your hard work and sacrifice has turned our economy around, but there is still a job to finish.

"But, with the Liberal Democrats, there is light at the end of the tunnel and the only way to continue the balanced approach that the coalition has taken is to put Liberal Democrats in government again."


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