Robert Brown calls for Income Tax Cut in Budget

12.00.00am GMT Mon 10th Mar 2008

Glasgow Liberal Democrat MSP Robert Brown has today called on Chancellor Alistair Darling for a cut in national Income Tax, to be paid for from a rise in green taxes, when he delivers his first Budget on Wednesday, the 12th March.

Last year the budget cut the basic rate of Income Tax to 20p, but also axed the 10p rate.

Mr. Brown said:

"People in Rutherglen and Cambuslang have been hit hard by higher prices for energy and basic household goods over the past year.

"Since the last Budget, the country has suffered again from extreme weather conditions, where climate change is likely to have been a causal factor. We only have to look at the flooding which occurs every time we have heavy rain to see the impact climate change is having on our lives and on our environment.

"The Budget is an ideal opportunity for the Government to tackle the environmental damage that is contributing to the freak weather conditions we are seeing too often. It is also an opportunity for Alistair Darling to cut the burden of tax on low and middle income households.

"The Liberal Democrats want to see a cut in national income tax to 16p in the pound. This should be paid for by increasing the taxes on activities that cause either greatest pollution or the highest energy use.

"This change in the way people are taxed gives greater choice and more disposable income along with an incentive to help fight climate change.

"The last budget was grossly unfair in asking the poor to subsidise the rich, by cutting the basic rate of income tax to 20p but axing the 10p lower rate.

"I strongly believe that the Liberal Democrats' plan of shifting more of the tax burden from people's income and onto pollution will benefit people in Rutherglen and Cambuslang who suffered after the 10p rate was axed last year.

"In Britain, the poorest fifth of households pay a bigger share of their income in tax than the richest fifth. The wealth divide between rich and poor has actually risen since Labour came to power.

"Labour should use the Budget to put right the problems they have allowed to grow since they first came to office in 1997."