Top Lib Dem backs wealth levy to fund a raise in tax threshold

DAVID Laws yesterday said the Liberal Democrats will need to introduce new taxes on wealth before they can fund further income tax cuts.

Speaking ahead of next week’s party conference, the education minister said there would need to be a “rebalancing of the tax system” towards levies on property if the party is to up the tax-free personal allowance on individuals’ income.

Lib Dem activists in Glasgow will have the chance to vote on a motion that would increase the personal allowance to £12,500.

But they are also expected to back an annual tax on houses worth more than £2m – known as the mansion tax.

Laws also said voters would return to the party in the run-up to the 2015 general election: “We had to take painful decisions and upset people – it was always the case we would pay a short term price in opinion polls.”