Liverpool Liberal Democrat Leader Cllr Carl Cashman backs major plans to save residents hundreds a year on income tax amidst cost of living crisis

Cllr Carl Cashman, Leader of the Liverpool City Council, has backed a new plan, announced at the party’s Autumn Conference, to cut income tax and save residents across Liverpool £680 a year.

It would see the tax-free personal allowance being raised from £12,570 to £15,000, taking 2.5 million of the lowest-paid workers out of income tax completely.

Cllr Carl Cashman has said that the new plan will tackle the squeeze on middle-income earners, put hundreds of pounds back in the pocket of millions of people, and take ordinary workers out of paying the higher tax rate that was designed for stockbrokers.

Across the country, the Liberal Democrats will also take 760,000 people out of the higher rate (40p) tax band by raising the threshold to £56,000, creating a saving of £1,480 a year for people.

In his keynote speech at the Liberal Democrat Party conference, Leader Ed Davey said the plans would be funded by growing the economy by joining the EU single market and creating a new customs union.

Commenting, Cllr Carl Cashman, Leader of the Liverpool Liberal Democrats, said:

“For years, families and businesses across Liverpool have been squeezed to breaking point by years of soaring costs and stealth taxes in this cost of living crisis.

“Both the Conservatives and Labour have picked local taxpayers’ pockets - leaving local families struggling with constant tax hikes. While Reform UK just offers cruel gimmicks that punish the most vulnerable in society, not fix the issues real people face.

“The Liberal Democrats are fighting for immediate tax relief for residents in Liverpool - putting cash back into people’s pockets, backing local businesses and giving power back to the community.”

More information on the policy can be found here.

Ed Davey’s conference speech can be found here.
- The Liberal Democrat plan would cut taxes for most people and take 2.5 million people out of paying income tax altogether by raising the tax-free personal allowance and employee NICs threshold to £15,000 within five years – well above inflation.
- It would also raise the higher rate threshold from £50,270 to £56,000 – taking 760,000 people out of paying the 40p tax rate.
- The House of Commons Library estimates that this plan would cost £17 billion in year five. This would be paid for through the dividends of the party’s plan for a new Growth and Defence Partnership with Europe, iwhich the party estimates will boost government tax revenue by £27 billion a year by the end of the next parliament.
- When in Government, the Liberal Democrats delivered an increase to the personal allowance from £6,475 to £10,600.