Ed Davey says Lib Dems will cut income tax to tackle cost of living
Lib Dem Leader Sir Ed Davey has pledged tax cuts which he says would be funded by growing the economy by rejoining the European Union's single market and a customs union, Political Correspondent Chloe Keedy reports
Speaking on the final day of the gathering in Brighton, Davey said that the current income tax band is "holding back teachers and nurses" and pledged to increase "the 40p threshold to £56,000".
He said: "30 years ago, just 2 million people paid it. Now it’s nine million.
"A tax band designed for stockbrokers is now holding back teachers and nurses. That’s not fair. It’s not right.
"And tellingly, Reform have said they will do nothing about it. But we will. Because our growth plan will mean we can raise the 40p threshold to £56,000."
"Taking hundreds of thousands of ordinary people out of paying higher rate tax. Growing our economy with Europe. Backing our great British businesses. Putting money back into people’s pockets."
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The party claims that the plan will "end the squeeze on middle-income earners" and will take 760,000 people out of the higher 40p rate of tax by raising the threshold to £56,000.
The Lib Dems also said that the party would raise the tax-free personal allowance from £12,750 to £15,000 and say that it would take 2.5 million of the "lowest-paid workers out of income tax completely".
Davey said: "I’m announcing our plan to raise the tax-free personal allowance to £15,000. Taking two million more people out of paying tax altogether, and giving most taxpayers a £680 tax cut.
"Real money, back in people’s pockets."
Davey claimed it would be funded by growing the economy through membership of the EU single market and a customs union.
Davey also used his speech to criticise Reform UK's tax cut plans, which he claimed is funded by "ripping £22 billion of crucial support away from disabled people".
He said: "Now – you might have heard Robert Jenrick say something similar at Reform’s conference. In between trying to defend Farage’s latest funding scandal.
"But here’s the big difference. Jenrick didn’t say this, but Reform’s figures show they’d pay for it by ripping £22 billion of crucial support away from disabled people.
"Think about that. Reform say you can have a tax cut, but only if they get to punish disabled people at the same time.
"We say no. We can cut taxes and support the most vulnerable people in our country. Because we will pay for our tax cut fairly and honestly."
He continued to call out Reform UK, criticising their £72 million donations, comparing Nigel Farage's leadership to that of President Trump and accused the party of fuelling "a far-right movement".
He said: "This is a far-right movement that is given oxygen, and heat, and fuel by politicians and parties who claim to be serious contenders to lead our country. Cynical politicians like Nigel Farage.
"Not just willing, but eager to fan the flames of hatred and intolerance to make himself richer. To get himself into power. Trying to create a nation of division and fear – because that’s what keeps him going.
"Well Conference, that is not our country. That is not who we are. It is the worst of Trump’s America. We must not let it become Farage’s Britain."
Davey went on to call for greater regulation of AI amid concerns it could "kill us all".
He said: "Artificial intelligence is already changing our lives – in ways we notice, and ways we don’t. Handled well, it could cure diseases, make work easier, unlock discoveries we can barely imagine.
"But handled badly, it concentrates more power in fewer hands than at any point in human history. And that is a threat not only to our country and our communities, but to the future of our whole species."
Telling the conference of the need for global collaboration, Davey continued: "We need a global treaty to press pause on super-intelligent AI now, before it’s too late.
"We need a new International AI Safety Agency – like we have for nuclear – to stop anyone from developing this technology recklessly."
It comes as Prime Minister Andy Burnham is due to raise the issue in his first meeting with President Trump on Tuesday afternoon.
Burnham had said that the recent warnings over the possibility of AI destroying humanity had made him pause but said that he planned to use the upcoming G20 summit to push for a global approach to AI.
Davey told delegates: "I’m afraid the plan Andy Burnham has set out – a partnership with Trump’s Department of War – doesn’t come close to meeting the scale of this threat.
"It only risks making us more dependent on a Trump administration in the pocket of the tech bros."
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