Tax cuts: "ease the burden on working people"

12.00.00am GMT Tue 11th Nov 2008

Welsh Liberal Democrat leader Mike German today called on Governments in Westminster and Cardiff Bay to put people first - and cut taxes for those on low and middle incomes.

With speculation rife in Westminster that Gordon Brown is considering the kind of tax cuts proposed for months by the Liberal Democrats, Mr German has also pushed for the Assembly government to look again at its draft budget, so that council tax could be kept lower. A debate in the National Assembly for Wales on Wednesday, sponsored by the Welsh Liberal Democrats, will look at the issue in more detail.

Mr German said: "Labour's creation of a debt-based economy in the UK, and the global credit crunch are causing incredible hardship for people on middle and modest incomes. Ordinary families are doing what they can to tighten their belts - now they expect the government to be doing the same.

"People across Wales are looking to government at both ends of the M4 to help them. The UK government needs to shift the burden of taxation from those who are suffering from the bust, and make those who made a fortune during the boom pay a fairer share.

"And in Wales, the Labour-Plaid Government needs to radically re-draft its budget. By pumping more money in to council budgets, they could ensure that council tax is kept down - without a major reduction in services. Council tax is the only tax the Assembly government has any direct influence over - and it is the tax which hits the lowest paid hardest.

"The Assembly's draft budget will be debated next week. Welsh Liberal Democrats will be looking for substantial changes in order to put money back in people's pockets. We will be putting forward serious amendments to put the people of Wales first. I hope the government in Cardiff Bay will prove as willing to implement Liberal Democrat ideas, as the government in Westminster seems to be."

NOTES:

· The Liberal Democrats' economic recovery plan, launched in September calls for:

· 1. Cutting taxes for struggling families so you've got more money in your pocket

2. Lowering energy bills so you can afford to keep warm this winter

3. Keeping people in their homes, so you don't need to fear unfair repossessions

4. Lower mortgage payments and cheaper business loans through big interest rate cuts