Tax Pollution - Not The Poor (Devon and Cornwall Liberal Democrats)

Devon and Cornwall Liberal Democrats <info@devon-cornwall-libdems.org.uk>

Tax Pollution - Not The Poor

March 22, 2007 10:23 AM

Budget box Chancellor Gordon Brown's eleventh Budget was a cynical sleight of hand according to the five Liberal Democrat MPs for Cornwall .

Mr Brown cut the basic rate of income tax by 2p but paid for it by abolishing the 10p starting rate, meaning many part-time and low paid workers will pay more tax, not less.

Cornwall 's MPs have also criticised the Chancellor for doing little to address the startling unfairness of the tax system which sees 20% of households pay a bigger share of their income in tax than the richest 20%. He also failed to tackle what is arguably the county's most unpopular tax - the Council Tax

Little was done to switch the tax burden over to those with the most environmentally damaging lifestyles. Vehicle Excise Duty on new cars will increase on the most polluting vehicles, but there are no measures to assist drivers in rural areas who are reliant on cars because of poor public transport. There was also nothing on reducing carbon emissions produced by aviation.

Julia Goldsworthy MP for Falmouth and Camborne and Liberal Democrat Treasury Spokesperson said:

"This budget does nothing to address the unfairness of the tax system - in fact it makes it worse. Those on low incomes, particularly part time workers, will be hit the hardest by the Chancellor's plans to abolish the 10p starting rate on Income Tax. Gordon Brown's decision to give a tax cut to middle income earners would be welcome if he hadn't paid for it by raising the level of income tax paid by the lowest earners.

"Liberal Democrats will make the tax system fairer for those on low and middle incomes by taxing the wealthy and those with environmentally damaging lifestyles. This will particularly benefit local pensioners, key public sector workers and young professionals. We should be taxing pollution, not the poor."

Dan Rogerson MP for North Cornwall said: "It is a great shame that the warm words spoken about tackling climate change over recent weeks have not been matched by substantive action in this budget. There was nothing new to reduce carbon emissions produced by aviation

"Whilst modestly increasing VED on the most polluting new vehicles is a step in the right direction, our own "green tax switch proposals" would bring in a top band of £2,000 for the most polluting vehicles, whilst giving drivers in rural areas a discount of 50%, recognising that higher prices cannot drive people onto public transport if none exists."