Ming Campbell to his defend tax plans at the next Party Conference

4.02.00am UTC (GMT +0000) Sun 2nd Jul 2006

tax to be fairer, simpler and greener - Ming Campbell

Sir Menzies Campbell says his authority as Liberal Democrat leader is on the line over his tax proposals. In an interview for today's GMTV Sunday Programme, he admitted he could lose a vote on the plans at his party's autumn conference and it was a personal test.

Last month Sir Menzies unveiled a radical shift in the Lib Dems' approach to tax with a 2p cut in the basic rate. The £20bn cost of the cut would be partially met by a £7bn increase in "green" taxes on cars and flights. The other £13bn would come from the "very wealthy" via capital gains tax changes on second homes and shares.

Sir Menzies said in a speech on 8 June that he was dropping the Lib Dems' long-standing policy of higher overall taxes, with his party instead championing "fairer, simpler and greener taxes". Plans to raise taxes to 50p in the pound for high earners had also been ditched, he confirmed. The party wants to introduce income tax cuts for everybody - 2p off the basic rate, and two million of the lowest paid will be lifted out of income tax altogether.

The new environmental taxes would mean hitting airlines and people who drive "gas guzzlers" - with road tax likely to rise to over £2,000 for the most polluting new cars. Sir Menzies said: "My aim is to cut the burden of direct taxes on the low paid and Middle Britain and pay for it by raising taxes on those who pollute the environment and on the very wealthy."

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