LIB DEMS TO PROMISE BIG TAX CUTS FOR LOW AND MIDDLE EARNERS

10.00.00am BST (GMT +0100) Mon 20th Apr 2009

The Lib Dems would stop 4million paying any income tax

Thousands of people in Cornwall who earn less than £10,000 a year are set to pay no income-tax at all under new plans unveiled today by Nick Clegg, the Leader of the Liberal Democrats.

In a telephone call with St Austell & Newquay's prospective MP, Steve Gilbert, the Leader of the Lib Dems said the party is set to fight the next general election promising a radical overhaul of tax policy with a pledge to cut income tax bills by £700 for people on low and middle incomes.

Nick Clegg said: "It's clear that this recession demands a radical overhaul of the British tax system. It remains scandalous that the richest in our country pay a lower share of their wealth in tax than the poorest. We are demanding that this distortion is changed."

He added: "We are renewing our call to close the loopholes exploited by big business and the powerful and wealthy. And today we are announcing that the Liberal Democrats will fight the next general election with a pledge to cut income tax bills by £700 for people on low and middle incomes."

The Lib Dem plan would see the income tax personal allowance level raised to £10,000 - paid for by closing the tax loopholes exploited by big businesses and the wealthy.

Steve Gilbert, the Lib Dem prospective MP for St Austell & Newquay, said: "This means that the thousands of people in Cornwall who earn less than £10,000 a year would not pay any income tax at all. It's a huge step toward making the tax system fairer and will delivery real money into the back pockets of people hit by the recession."