LOWEST TAX SINCE 1916 TO BOOST EASTLEIGH

5.17.21pm UTC (GMT +0000) Tue 17th Jul 2007

Eastleigh MP Chris Huhne welcomed plans to cut the basic rate of income tax to 16p, and scrap the council tax, benefiting millions of people on low and middle incomes.

Mr Huhne was a member of the Liberal Democrat tax group that put forward the plans. He said: "These proposals would mean lower tax bills for most households in Eastleigh as well as tackling inequality and environmental damage. We need fairer and greener taxes, not higher taxes."

Proposals in the Liberal Democrat tax policy paper, 'Reducing the burden: Policies for tax reform' would -

· Save a typical Eastleigh double-earning couple around £990 a year through measures including a 4p cut in the basic rate of income tax and the abolition of council tax

· Save a typical pensioner couple nearly £1,290 a year through proposals including scrapping council tax

· Reform stamp duty to reduce the amount of tax paid on properties worth less than £500,000

· Reform Inheritance Tax, with the aim of raising the starting threshold to £500,000

· Scrap special tax reliefs benefiting the wealthiest in our society

Chris Huhne MP said: "The current tax system is unfair. The unacceptable reality is that in Britain today the poorest pay a higher proportion of their income in tax than the super-rich. Wealth inequality has actually risen since Labour came to power.

"Our new proposals will put fairness at the heart of the tax system. Low and middle income earners in this country shoulder too heavy a tax burden. These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles.

"I am emailing constituents to ask for their views on these plans, and I hope that people will be as excited by them as I am. I look forward to the debate and vote at the Liberal Democrat Conference in Brighton in September."