Ukip wants to raise the personal income tax allowance to above the minimum wage and slash corporation tax to 10 per cent as it begins to set out its economic plans ahead of the 2015 general election.
Speaking at a fringe event on tax at the party’s annual conference in London today, Ukip head of policy Tim Aker said the party will target tax simplification and set out more detailed plans closer to the next election.
Earlier this week, the Liberal Democrats voted to raise the personal allowance to £12,500 at its conference and Aker accused them of “thieving” the policy idea. The current personal allowance is £9,440, rising to £10,000 next April.
Aker said: “Taking the lowest paid out of tax will not force employers to pay more but ease the tax burden on the lowest paid so they have a living wage. It is going about it differently than the established view that the old, centrist parties go about it.
“We are looking at ways of using the £20bn a year, or £55m a day, sent to the EU. I don’t know whether it is a remarkable co-incidence but the annual cost equals, give or take, our EU contributions.
”When people say it will cost us jobs to leave the EU then we can say this low tax will attract quite a few jobs. The only people who would lose their jobs would be the commissioners and people we send over there.
“We will have more specifics closer to the election as it would be daft to set out an economic policy now because we don’t know what will happen.”
Aker said the party still has ambitions to introduce a flat rate of income tax but the party has to be “realistic” and pay for its plans.
He said: “We are looking for a simple, low rate tax policy. The flat tax is still an ambition but the first question is how will we pay for it? We have to be realistic.”
Ukip financial services spokesman and MEP Godfrey Bloom is pushing for a flat rate tax of 30 per cent with transferable personal allowances between spouses.