- Deputy PM says Britain's wealthiest should contribute to 'economic war'
- Nick Clegg demands a new tacx in addition to levy on 'mansion tax'
By Jason Groves
|
Clegg clamp-down: The Deputy PM wants a new tax on Britain's richest
Nick Clegg last night demanded a swingeing new tax on the rich to help ease the financial squeeze being suffered by the less well-off as austerity measures bite.
The Deputy Prime Minister said Britain's wealthiest should be made to contribute more to the 'economic war', which has been made worse by the double-dip recession.
He said an extra 'time-limited contribution' from the rich would be seen as fair given the scale of Britain's financial problems.
Without it, he suggested, Britain could suffer a breakdown in 'social cohesion' as seen during last summer's riots.
Calls for a new tax to soak the rich are likely to antagonise the Tory Right, who argue that cutting taxes is the best way to boost growth and persuade the well-off to pay more.
The Liberal Democrat leader gave little indication of where he thought the new tax should be levied, although he suggested it would be in addition to the party's existing proposal to levy an annual 'mansion tax' on homes worth more than 2million.
In an interview with the Guardian he said the prolonged nature of the battle to tackle the deficit left by Labour called for exceptional measures.
He said: 'If we want to remain cohesive and prosperous as a society, people of very considerable personal wealth have got to make a bit of an extra contribution.
'In addition to our standing policy on things like the mansion tax is there a time limited contribution you can ask in some way or another from people of considerable wealth so they feel they are making a contribution to the national effort?
Return of the Laws: Mr Clegg says he wants disgraced David Laws back in Government despite Mr Laws resignation over his expenses
'What we are embarked on is in some senses a longer economic war rather than a short economic battle.'
Mr Clegg said it was vital for the Government to 'really hard-wire fairness into what we do in the next phases of fiscal restraint'. He added: 'If we don't do that I don't think the process will be either socially or politically sustainable or acceptable.'
In a gloomy assessment, Mr Clegg said it was now clear that what once appeared to be a 'short, sharp economic battle' was 'clearly turning into a longer term process of economic recovery and fiscal restraint'.
He said this would involve 'sacrifices over a longer period of time, a longer period of belt tightening as a country' – making it essential that the rich are seen to be playing their part.
Mr Clegg said details of his new tax proposals would be unveiled at next month's Lib Dem conference.
Forced vote: Nick Clegg's Lib Dems have refused to support David Cameron's proposed boundary changes following the collapse of the Lords reform
He suggested the tax was likely to target 'very high asset wealth'. Changes to the top rate of income tax have been all but ruled out following the Coalition's controversial decision to reduce it from 50p to 45p earlier this year.
Mr Clegg also gave the strongest hint yet that David Laws is set to return to Government in the forthcoming reshuffle.
Mr Laws was forced to quit his post as Treasury Chief Secretary after less than a month following revelations about his expenses.
But he has continued as an informal adviser to Mr Clegg, particularly on economic matters and is now tipped to return as a minister in the Cabinet Office.
Mr Clegg said: 'I have never made any secret of the fact that I want to see David Laws back in Government.'
Mr Clegg also urged David Cameron to force a vote on proposed boundary changes, which the Lib Dems have refused to support following the collapse of the Government's plans for Lords reform.
When you look at the scandalous way the government wastes billions, why on earth is it a good idea that they should tax any group more. It´s you Cleggy and Cameron with your chronic inability to address the fact that the UK is bankrupt that is bringing the country down.
- brian, La Granja, Spain, 29/8/2012 05:29
Report abuse