Liberal Democrats in Islington demand tax cuts to help beat recession (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

Liberal Democrats in Islington demand tax cuts to help beat recession

November 6, 2008 10:34 AM

Bridget Fox with Liberal Democrat Shadow Chancellor Vince Cable MP

Liberal Democrats in Islington have called for a cut in income tax for people on low and middle incomes to help them beat the recession.

"Inflation is at its highest for years," said Bridget Fox, Islington's Liberal Democrat shadow MP. "Residents of Islington are struggling with rising fuel and housing costs. They need money in their pockets now."

The Liberal Democrats are calling for a cut in income tax of 4p in the pound. It will be paid for by closing the loopholes used by the most wealthy to avoid paying tax.

Bridget commented:

"Too many people are faced with the prospect of either eating properly or heating their homes. Action is needed now to help residents of Islington who are struggling with rising prices.

"Many residents on low incomes are paying more in tax following the government's decision to double the starting rate of income tax to 20p in the pound. Though the government was eventually forced to come forward with a package to compensate people for the tax increase, many are still worse off.

"In Islington, a fifth of residents are on a low income, earning below £17,000 per year. That's 18,000 people who've been hit by Labour's hike in income tax in our area alone.

"Cutting income tax will therefore give residents and our local economy a boost at a time when it is desperately needed."