High Peak Liberal Democrats

Labour doesn't understand the tax system - Williams

Commenting ahead of the debate on the Finance Bill, Co-Chair of the Liberal Democrat Parliamentary Treasury Committee, Stephen Williams said:

"It is worrying that the two Eds don't understand the fundamental principles of our tax system, despite having worked in the Treasury for many years as Gordon Brown's backroom boys.

"It took them 13 years to introduce a 50p rate and then they only did so shortly before a general election. Now that the local elections are coming up, suddenly they care about it again and put down ill-thought through amendments that remove the top rate altogether.

"Labour's biggest tax change was to remove the 10p tax rate hitting people on low and middle incomes while Liberal Democrats are giving nearly 25m basic-rate tax payers an Income Tax cut and have lifted more than a million people out of paying Income Tax altogether. At the same time, we're making the rich pay their fair share by cracking down on loopholes and excessive tax relief."

An amendment put down by Labour removes the proposed additional rate level of 45% for 2013-2014 altogether, leaving the higher rate at 40% as the highest level of tax.