Lib Dems pledge to cut tax and end tuition fees

The Liberal Democrats made their first tax-cutting proposals in a "political generation" yesterday and vowed to reduce every household's council tax bill by £100.

Matthew Taylor, the party's treasury spokesman, announced a "Robin Hood" budget, which would take more tax from the better-off, boosting state pensions and scrapping tuition and top-up fees for students.

"Our plans are for a fairer tax system, with the super rich, the 1 per cent of taxpayers lucky enough to earn over £100,000 a year, paying a little more to help the other 99 per cent," Mr Taylor said. Setting a 50p rate, an increase of 10p in the rate, would raise £4.5bn extra in a year.

The party pledged to spend £2bn of this abolishing tuition and top-up fees. The remaining £2.5bn would pay for council-tax cuts. Pensioners would gain £5 a week, with £10 more for the over-75s and £15 for the over-80s.

Mr Taylor said Labour increases in indirect taxes meant the poorer 20 per cent paid 40 per cent of their income in tax while the richest 20 per cent pay just 35 per cent.