4p Income Tax Cut would be a great news for the people of South Edinburgh

10.47.16am BST (GMT +0100) Fri 13th Jul 2007

Local Liberal Democrat Westminster Spokesperson Fred Mackintosh has welcomed plans unveiled today to reduce the basic rate of income tax to 16p, and scrap the council tax, benefiting millions of people on low and middle incomes.

He said: "These proposals would mean lower tax bills for most households in south Edinburgh, as well as tackling inequality and environmental damage."

Proposals in the Liberal Democrat tax policy paper, 'Reducing the burden: Policies for tax reform' would -

Save a typical pensioner couple nearly £1600 a year through proposals including scrapping council tax.

Save a typical double-earning couple around £924 a year through measures including a 4p cut in the basic rate of income tax.

Remove tax loop-holes exploited by the super-rich

Reform stamp duty to reduce the amount of tax paid on properties worth less than £500,000

Reform Inheritance Tax, with the aim of raising the starting threshold to £500,000

Fred Mackintosh said: "The current tax system. The poorest pay a higher proportion of their income in tax than the super-rich. Wealth inequality has actually risen since Labour came to power.

"We want to put fairness at the heart of the tax system. Low and middle income earners in this country shoulder too heavy a tax burden. These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles."