Vince Cable

'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.

"While Labour resorts to sending home sick nurses, the Tories can't even tell you what departments their cuts will be made in.

"The Liberal Democrats have an honest and credible plan to tackle the deficit and a fully costed tax plan to put £700 back in the pockets of average workers."

ENDS

Notes to Editors

1. 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.

2.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.