Lib Dems plan £10,000 tax threshold

Out of the blocks ahead of the formal Labour manifesto launch,the Lib Dems have outlined their plans to raise income tax threshold to £10,000.

Alongside Vince Cable,leader Nick Clegg said the move would be funded by £17bn found by equalising capital gains and income tax rates, closing tax loopholes, equalising subsidy in pension contributions, clamping down on tax avoidance, the mansion tax and a plane levy on domestic flights.

Clegg writing on the Lib Dem website said that

“Under Labour the tax system is complex, unwieldy and most of all unfair.“We are proposing the biggest tax switch in generations. A radical overhaul to make sure those at the top pay their fair share in order to put money back in the pockets of people who need it. adding that

“Unlike the Conservative party, we are setting out in full, in detail, where every last pound of the money will come from.