Tax Policy Must Change Lib Dems Told

Article excerpt

New Lib Dem leader Sir Menzies Campbell yesterday hinted at punishing "green" taxes to tackle global warming.

Sir Menzies told the party's spring conference the tax system must provide incentives to businesses and individuals not to damage the environment.

And he opened the door to dumping the party's controversial top rate of income tax which critics say cost it votes at the General Election.

In a speech to delegates in Harrogate just three days after being named leader Sir Menzies set out the three principles for a new fairer tax regime.

"First the tax burden must be lighter for those on lowest incomes," he said.

"Second the tax system must provide incentives to companies and individuals to behave in a way that sustains our environment.

"Third the system must be simple - it must support enterprise and must not stifle it."

Chris Huhne, who lost out to Sir Menzies in the leadership contest, has said it is vital to raise green taxes in a bid to tackle climate change.

He is widely expected to be made environment spokesman in Sir Menzies's shadow cabinet where he would flesh out his plans. …