In 2010, our country inherited a broken tax system. People on very low incomes were paying far too much tax, and at the top many were exploiting loopholes to avoid paying their fair share.
I am really proud we have begun to repair our tax system. We have raised the income tax threshold to £10,600, pushing 3 million of the lowest earners out of paying income tax altogether. But we need to go further, and I want us to increase the threshold to £12,500.
At the top, we have set up a new special tax unit, the first of its kind, to tackle tax dodging. It is expected it will claw back £9bn extra by the end of 2014/15. We’ve also closed 33 tax loopholes and introduced a ‘Google tax’ to work towards stopping companies from diverting profits abroad and paying less tax.
But I am clear we need to go much further, as exposed by the HSBC scandal. That is why I am personally campaigning on behalf of the ‘Stop Global Tax Dodging’ campaign, led by a coalition of charities. I am pleased my party is bringing forward new measures to tackle tax dodging. Lib Dems also remain committed to a Mansion Tax so that the those with valuable properties pay their fair share.