The Liberal Party views with alarm the chancellor’s assertion that tax increases will be necessary in the October budget to balance a newly emerged £22bn shortfall in funding.
The party believes that ample scope exists for reforms of the tax system, including numerous tax rebates and allowances to balance the budget without either cuts to government spending or benefits such as the winter fuel allowance.
We believe that the Labour party risks being accused of mis-leading the electorate if it campaigns on a solemn election manifesto pledge not to raise taxes, but then rows back on this, however pressing they claim the situation to be.
Economic growth to fund spending can be stimulated by better support for small businesses and SME (such as increasing the VAT threshold to £150,000), who create economic activity, prosperity and employment in local communities.
These sectors offer the best avenue to increase productivity, tax receipts and reduce unemployment.
Liberal Party NEC