Davey pledges tax cuts for millions if Lib Dems gain power
In a speech at the party conference, Sir Ed Davey promises to raise tax thresholds and cut taxes for workers if he becomes Prime Minister.
By BBC News
Sir Ed Davey, leader of the Liberal Democrats, announced plans to cut taxes for millions of workers during a speech at the party's conference. He stated that if elected, he would raise the annual tax-free personal allowance to £15,000 and increase the 40p income tax threshold from £50,270 to £56,000. This proposal is part of a £17 billion package that Davey claims would be funded by the economic benefits of the UK rejoining the EU single market and customs union.
Davey asserted that the plan would result in a £680 tax cut for most taxpayers, although he noted that these changes would not take full effect until the fifth year of a potential Lib Dem government. His announcement received enthusiastic applause from party members at the Brighton conference centre.
The current income tax allowance of £12,570 was frozen by the Conservative government in 2021, leading to more individuals being subject to taxation. The Liberal Democrats aim to unfreeze personal allowances in the second year of their government, allowing them to rise with inflation before implementing significant tax cuts in the fifth year.
Davey contrasted his party's approach with that of Reform UK, which has also proposed raising the income tax personal allowance to £15,000. He claimed that Reform's plan would be funded by cuts to vital support for disabled individuals.
In his speech, Davey highlighted the unfairness of the current tax system, stating that a tax band originally designed for higher earners is now affecting teachers and nurses. He argued that the Lib Dems' tax cuts would be made possible by a closer trading relationship with the EU, which he believes would stimulate economic growth.
Additionally, Davey addressed the rising influence of far-right movements in the UK, linking them to historical fascism and calling for a return to community politics rooted in decency and fairness. He also took aim at Conservative leader Kemi Badenoch for her shifting policies on climate change and human rights.
The Lib Dem leader ruled out a coalition with Reform UK and dismissed the possibility of aligning with the Conservatives, as his party did in 2010. He also raised concerns about the potential dangers of artificial intelligence, advocating for a global treaty to regulate its development.
The Liberal Democrats are positioning themselves as a tax-cutting party to attract voters in traditional Conservative strongholds, with Davey emphasizing the need for a movement that embodies British and Liberal values.