Liberal Democrats will cut people's income tax bill by £700

12.39.02pm BST (GMT +0100) Tue 21st Apr 2009

In advance of tomorrow's budget, Oxfordshire Liberal Democrats have welcomed Lib Dem national plans to cut income tax bills for people on low and middle incomes by £700.

In plans announced yesterday by Nick Clegg and Vince Cable, the party promised to raise the income tax personal allowance to £10,000 by closing tax loopholes exploited by big businesses and the wealthy.

Cllr Zoe Patrick, Leader of the Liberal Democrat Group, said, "These plans will give money back to the people who really need it at the time when they need it most.

"Far from making this reform difficult, tight Government finances and the recession make it absolutely vital. It will help millions of low and middle income taxpayers who are most likely to spend money so helping the wider economy."

Cllr Alan Armitage, Liberal Democrat Finance spokesman, added, "The other two parties seem to be promising only spending cuts. We in local government know that central Government spending cuts actually hit the poorest and most vulnerable in our society most. I'm delighted that my party at least has practical plans to help both the economy and the people most in need. The other two parties need to think again; we won't object at all if Alistair Darling decides to take Vince Cable's advice on this. He has before!"