With just under a month to go until the Budget, The Liberal Party anticipates a budget that will unfortunately resort to tax hikes in order to paper over, an ever-bleak economic picture. The party believes this will inevitably have a detrimental impact on long term growth.
The Liberal Party would rather see a wholesale root and branch reform of the economic system of the UK, beginning by simplifying the Tax system, for example merging National Insurance with Income Tax. Moreover, by amending the tax system, the party believes that it will allow for organic growth in the economy by encouraging investment.
Furthermore, The Liberal Party welcomes the news that Capital Gains Tax are said to be increased in line with Income Tax; however, the party would add a caveat that it should also allow for inflationary gains, to prevent damaging the prospects of entrepreneurs.
The party would also like to see the personal tax threshold increased to 15K, thus taking at least five million out of paying income tax and thus stimulating growth by increasing demand in the economy. This would encourage more people back into work including part time, by making work pay.
Finally, the party would like to see the freeing up to 1.2 million small businesses from paying corporation tax (over 80% of companies) by lifting the minimum threshold to £100,000. Subsequently, small businesses would pay 15% corporation tax rate, rather than 25%.