Lib Dems Plan 4p Cut in Tax Rate

The Lib Dems want to cut the basic rate of income tax from 20p to 16p in tax changes they say will leave households earning up to about £68,000 better off.

"Green" taxes on cars and flights and the ending of £13.5bn of tax breaks for high earners would fund the cuts.

Council tax would be replaced by a local income tax and inheritance tax and stamp duty thresholds raised.

Leader Sir Menzies Campbell said: "Tax cuts for the majority will be paid for by the wealthy minority."