Lib Dems: Tax rise undeniable
Monday, 21 Apr 2008 14:36
Changes to income tax banding in the 2007 Budget are a "tax rise", the Liberal Democrats believe.
Economic affairs spokesperson Vince Cable accused the government of a "£7 billion tax grab" in the changes, which came into force last week.
The introductory 10p rate has been scrapped while the 22p band has been lowered to 20p. Analysts warn five million people will lose out as a result.
Mr Cable criticised Labour MPs for joining the Lib Dems in criticising the changes "at the 11th hour".
And he attacked chancellor Alistair Darling's comments that he cannot "rewind" the Budget, claiming his comments did not "address the fundamental criticism that have been made".
"Cuts in the basic rate of tax are welcome but this cannot be at the expense of those on very low incomes," Mr Cable concluded.