Labour and Tory plans would drive public finances into the ground

Whether it's for tax cuts or filling in the deficit hole, both parties seem to be in a competition to see who can come up with the least credible cuts' said the Liberal Democrat Shadow Chancellor.

Commenting on the continuing debate over Tory plans to reverse National Insurance rises, Liberal Democrat Shadow Chancellor, Vince Cable said:"Labour and the Tories are as bad as each other. Under both their plans, public finances would be driven into the ground. Whether it's for tax cuts or filling in the deficit hole, both parties seem to be in a competition to see who can come up with the least credible cuts.

Mid Sussex Parliamentary Campaigner, Serena Tierney says "Liberal Democrats want to offer real help to the millions of families trying to make ends meet, so we will get government spending under control and give the economy a boost by cutting taxes for people from the bottom up. We will also crack down on big business and the super rich who exploit tax loopholes and do not pay their fair share. Under our plans, every family would be £700 a year better off and the poorest would no longer have to pay tax at all."

It is not surprising that some company CEO's recently publicly backed the Conservatives in their plans to rescind Labour's proposed increase in national insurance next year. On average company bosses are now paid 80 times average pay - up from almost half as much 10 years ago.

It's quite worrying that these high-powered business people are not questioning how these tax cuts are to be paid for. How can they be taken in by George Osborne claiming on Tuesday that the government's 'efficiencies' relied on the budget are make-believe and then saying on Thursday that he will use the self-same 'efficiencies' to fund his tax cut for the rich ?

The increase in National Insurance Contributions is a damaging tax on jobs and unfair to employees; however with a structural deficit of almost £70bn no party can credibly say they are going to reverse it unless they can clearly show how they are going to pay for it. The Conservatives claim that they will pay for their National Insurance policy through 'efficiency savings'. This is entirely incredible when they can't even say which department these efficiencies will come from.

The Liberal Democrats are proposing a fully funded radical change to the tax system. We will raise the threshold at which people start paying income tax from current levels to £10,000, cutting the average working age person's income tax bill by £700, and meaning that 3.6m will no longer have to pay any income tax at all. We will pay for our tax cut by closing tax loopholes and cutting reliefs that benefit the wealthiest as well as placing a 1% levy on the value of properties over £2m.