Annette Brooke says "Tax pollution, not people!"

3.27.45pm BST (GMT +0100) Wed 20th Sep 2006

The Liberal Democrats have voted for a radical change to the British tax system at their conference in Brighton today. The new 'Green Switch' policy would ensure that taxes on work are shifted to taxes on pollution - protecting the environment and those households on the lowest incomes.

Annette Brooke, MP for Mid Dorset and North Poole, said:

"Our new tax policies are a solid step in the right direction. Many of my constituents are burdened with unnecessarily high income tax and council tax. If we can focus taxation on those activities which pollute our environment, then the burden will be lifted from those less able to pay."

Under the Lib Dem proposals, those earning under £8,000 will pay no income tax at all, the basic rate of income tax will be cut by 2p and the top rate of 40p will only apply to those earning over £50,000. The council tax - increasingly unaffordable for many individuals - will be replaced with Local Income Tax, based on the ability to pay.

The tax proposals would instead switch focus to areas currently causing the most damage to our environment, such as gas-guzzling cars and empty flights.

Liberal Democrat Leader Sir Menzies Campbell said:

"We are going into the next election with bold and credible tax policies.

"They demonstrate our commitment to tackling inequality and environmental damage whilst maintaining financial discipline."

Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"I welcome conference's endorsement of these radical tax policies, which will see two million low paid workers taken out of income tax altogether. They put us on a strong footing as we move towards the next election.

"Green taxes will produce the behavioural changes needed to safeguard our environment without increasing the overall tax burden."