Liberal Democrat Economic Recovery Plan (Bristol East Liberal Democrats)

Bristol East Liberal Democrats <info@bristoleastlibdems.org.uk>

Liberal Democrat Economic Recovery Plan

March 19, 2009 12:14 AM

Fule Poverty The Liberal Democrat Economic Recovery Plan would cut taxes for people on low and middle incomes and cut energy bills

Lib Dem plans to help families include tax cuts for low and middle income households, stopping unnecessary repossessions and action to cut energy bills.

Families are facing a difficult winter. Rising mortgage bills, the fear of unemployment and high heating costs mean that the shockwaves of the financial crisis are being felt in households across Britain.

When the banks were in trouble, they got rescued. Millions of families who are finding themselves in trouble must be helped too.

Mike Popham, Bristol East Liberal Democrat Prospective Member of Parliament

Our Plan to Help Families

1. Cutting taxes for struggling families so you've got more money in your pocket

The Liberal Democrats will cut taxes for people on low and middle incomes, raising them for the richest so the tax cuts are affordable. We will fund this by ending upper rate tax relief on pensions, clamping down on tax avoidance, harmonising income and capital gains taxes, increasing green taxation and trimming overall central public spending. These proposals would not increase the government fiscal deficit; that means they are affordable now. This tax cut is now urgent to get money to people who are struggling the most, helping them to pay for essentials and keep spending money in the high street.

In November a Liberal Democrat motion calling for an immediate substantial cut in income tax for lower and middle income families was rejected by Labour MPs in the House of Commons. Later in the month the Government missed a golden opportunity to make the tax system fairer in the Pre-Budget Report, instead introducing a £5 billion tax hike which will hit low earners. Read more of the Lib Dem response to the Chancellor's statement here.

2. Lowering energy bills so you can afford to keep warm this winter

Millions of people face a winter unable to heat their homes: four out of five single pensioners are in fuel poverty this winter. Energy companies must pass on cuts in wholesale fuel prices in full to consumers. We will also change billing rules so the first units of energy you use are no longer the most expensive. Essential energy should be the cheapest, while bigger users pay more. This is fairer, and will help the environment. Finally, those energy companies that received a £9bn subsidy from the European Emissions Trading Scheme must invest in lower tariffs for vulnerable customers and providing comprehensive insulation for everyone.

Lib Dem MP David Heath has introduced a Fuel Poverty Bill in an effort to get some of these measures into law. The Bill will be debated in the House of Commons on Friday 20th March. Find out more about the Bill and what you can do to help it become law at the campaign website.

3. Keeping people in their homes, so you don't need to fear unfair repossessions

We must ensure that banks only ever repossess people's homes as a last resort. Liberal Democrats will instruct the courts to make sure banks don't repossess unless they've already offered free independent financial advice, and pursued all alternatives like renegotiating the terms of the mortgage and offering a shared equity agreement.

We already have nearly two million families on housing waiting lists. We can help those families and prevent a homelessness crisis by allowing councils and housing associations to buy up unsold properties and land from building companies. This will replenish our social housing stock, stimulate the house building industry and provide homes now for people who need them.

Vince Cable has highlighted in the House of Commons how limited the Government's proposals are in this area.