Lib-Dems attacked on tax cut proposals

LIB-Dem plans to bring in tax cuts for the low paid have sparked a war of words among local politicians.

The party’s candidate for Oldham East and Saddleworth, Elwyn Watkins, said the proposals would create a fairer tax system that would mean no one paying tax on the first £10,000 they earned each year. It would take four million of the least well off people out of paying income tax.

Lib Dems have calculated this will give every working person a £700 tax cut. Pensioners would each receive a £100 tax cut.

Mr Watkins said: “Labour has let its friends in the City of London run riot, giving them tax break after tax break and making the poorest pay through the nose instead.

“The Liberal Democrats will make the super-rich pay their fair share of taxation. Hard working people in Oldham East and Saddleworth will each get a £700 tax cut.”

Along with closing a series of tax loopholes the Lib Dems would introduce a mansion tax — a one per cent levy on the value of homes worth more than £2 million. This would apply primarily to wealthy people in London and the South-East.

Mr Watkins added: “It is completely unfair that the very richest in the country often get away with paying very little, while the lower earners pay a hefty chunk of their income in tax. That’s why we’re introducing the mansion tax to make the very richest pay more.”

But Joe Fitzpatrick, chairman of Oldham East and Saddleworth Constituency Labour Party, attacked the comments.

He said: “I cannot believe the breathtaking hypocrisy of Elwyn Watkins in his statement on taxation and the low paid. Elwyn says ‘The Liberal Democrats will make the super rich pay their fair share of taxation.’

“This is incredible coming from Elwyn, a man who quite openly states that he is the financial adviser to one of the richest Arabs in Saudi Arabia, Sheikh Abdullah Alhamrani.

“The low paid people of Oldham don’t need lectures from Elwyn Watkins whose working life is spent among Arab Sheikhs who are so wealthy they make David Cameron look poor.”