"INVEST IN SCHOOLS, NHS AND POLICE BEFORE TAX CUTS" - DAVEY

Local MP draws up Liberal Democrat budget priorities

Charles Kennedy MP, Leader of the Liberal Democrats, will today launch the Liberal Democrat Alternative Budget drawn up by Shadow Treasury Spokesperson and local MP, Edward Davey. This briefing outlines the Liberal Democrats' priorities for the forthcoming budget.

The Liberal Democrats will be the first British political party to guarantee that there will be no new stealth taxes as seen under both the Conservatives and Labour. A Liberal Democrat government will send every taxpayer an annual Citizen's Tax Contract - a simple explanation of what people are paying in tax, any tax changes introduced, why, and what they are spent on.

Key elements of the fully-costed budget drawn up by Edward Davey include:

Health:

• Provide training places for 3,300 more doctors and 11,400 more nurses and midwives over five years.

• Reward low-paid nurses, midwives and other professionals by paying them an additional £1000 on average every year.

• Funded by using part of the revenue from a new 50% top tax rate on income over £100,000, and by capital gains tax changes.

Education:

• Cut class sizes to 25 and provide a classroom assistant for 5 to 11 year olds.

• Fund an additional 5000 secondary teacher places.

• Funded by 1p on the basic rate of income tax.

Pensions:

• Increase the basic state pension by £5 a week for each pension and £10 for the over 75s and £15 for the over 80s.

• Pay for both the nursing and personal care costs of those pensioners needing long term care.

• Funded through the 50% top tax band.

Charles Kennedy MP, Leader of the Liberal Democrats, said:

"The Tories and Labour are fighting a meaningless war of words. You can't cut taxes without cutting services. Everybody knows you can't get something for nothing."

Shadow Treasury spokesperson Edward Davey MP, said:

"Liberal Democrats will explain exactly what people are paying in tax and what their money is being spent on. You can't get more teachers, nurses and police on the beat for free - but they are affordable."

Nick Harvey, Liberal Democrat Shadow Health Secretary, said:

"If Britain spent as much on health as other developed countries then more people would survive cancer, more people would recover from heart attacks and old people would not have to sell their homes to pay for their care.

"You either ask people who can afford it to contribute a little more in tax or people will be driven into paying for private treatment as the Conservatives plan. You can't get a decent health service at cut price."

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