Lib Dems defiant on 50p tax rate

17 September 2011 Last updated at 05:20 ET

Nick Clegg said the government was “straining every sinew” to get the economy going

Liberal Democrats are gathering for their autumn conference, with leaders defiant they will not agree to calls from some of their Tory coalition partners to abolish the 50p tax rate.

In the Independent, leader Nick Clegg said he would demand tax breaks for lower and middle income earners first.

Deputy leader Simon Hughes said the party was awaiting a report from the Chancellor, George Osborne.

But Mr Osborne said the 50p tax rate was always a temporary measure.

The five-day conference is being held in Birmingham, with leader Nick Clegg expected to highlight the party’s achievements in government.

Delegates are expected to vote on 15 policy motions on issues including welfare reform, adult social care, phone hacking and Lords reform.

Nick Clegg told the BBC it had been “a really tough year” but his party would get “stronger in the future”.

Since their last conference, the Lib Dems have suffered their worst English local elections for 30 years, losing nine councils and 747 councillors.

‘Sworn enemies’

Mr Clegg has faced much personal criticism, but has also claimed his party is acting as “a moderating influence” on its coalition government partners, the Conservatives.

Nick Clegg said the achievements he would be highlighting included raising the income tax threshold, reforming the state pension and creating more apprenticeships.

But he admitted: “Some people who used to support us don’t now.”

He added: “It’s been a really tough year. We came into government in what were obviously controversial circumstances because we are governing with our sworn enemies the Conservative Party, and, even more controversially, we’re having to make very, very difficult and in some cases downright unpopular decisions.”

In his Independent interview, the deputy prime minister threatened to veto any plans to abolish the 50p rate.

He said a tax cut for the “very, very rich” would destroy public confidence, and promised to focus on less well-off taxpayers: “What I, and any government including Lib Dems, are interested in is lowering the tax burden on millions of people on lower and middle incomes – not rushing to make sure the very, very richest pay less tax.”

“It is not going to happen – certainly not until there is significant progress on giving tax breaks to those on lower and middle incomes.”

The chancellor defended the government’s review of the rate, saying he was awaiting the results of the assessment. But he agreed a further tax cut for low and middle income earners should be considered.

Mr Osborne said: “One of the last things I have been able to do in the last couple of budgets is lift over a million low income people out of income tax, and I would hope in future budgets to be able to continue to do exactly that kind of thing.”

But the Lib Dem deputy leader Simon Hughes said: “The difference between us and the Tories is that we concentrate on people on the bottom of economic scale, and spend less time looking after people in London who’ve done very well, thank .”

Backing for leader

Meanwhile Nick Clegg said the government was “straining every sinew” to get the economy moving and would be making more announcements in the coming weeks, including on ways to speed up the building of new affordable homes.

Simon Hughes said that, despite the difficulties, it would be wrong to criticise Nick Clegg for leading the party into coalition, and it wanted him to lead it again at the next election.

About 8,000 delegates are expected to attend the conference at Birmingham’s International Convention Centre, where security will be much tighter than in previous years.

Some party members are so concerned at the stringent identity checks that a motion has been put forward for debate on the subject.

The conference will end with a keynote speech by Mr Clegg on Wednesday.

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