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Lib Dems to set out plans for £8bn in tax rises

The Liberal Democrats will set out their economic plans for the next Parliament, including £8bn worth of tax rises, later today.

The BBC reports Liberal Democrat leader Nick Clegg will also set out proposals for £16bn in spending cuts in a speech in London.

The party promises to balance the books by 2017/18 and says its plans do not require any increase in the headline rates of taxation: income tax, national insurance, VAT or corporation tax.

Clegg will say the Lib Dems would raise benefits, excluding pensions and disability payments, by 1 per cent a year.

The party has renamed its plans for a mansion tax to a “high value property levy”, which it says would raise £1.5bn, while a crackdown on tax avoidance would save £6bn.

The deputy prime minister will say: “It is incomprehensible to most people that you would try and balance the books without asking for a contribution from the wealthiest people in our country.

“Liberal Democrat plans are for a bigger tax contribution from those who can afford to pay – the wealthiest individuals and big businesses which are not always paying their fair share.”

The Lib Dems are pledging to protect low and middle-income earners as well as spending on education, the NHS and foreign aid.

There would also be an increase in the banking levy and changes to the tax deductibility of interest payments.

The Conservatives have also committed to balancing the country’s finances by 2017/18, but have said they will not raise taxes.

Labour has set out a number of tax rises, including a mansion tax on expensive homes and a bank bonus levy.

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