UKIP outlines strategy on taxation

Written By Unknown on Kamis, 21 Agustus 2014 | 16.50

21 August 2014 Last updated at 04:15

UKIP has set out the tax strategy that will be part of its manifesto in next year's general election.

The party will enter the race with a pledge to cut taxes and take low earners out of income tax entirely.

MEP Tim Aker, head of the party's policy unit, told current affairs magazine Prospect the plans were part of a "blue-collar platform".

UKIP would also make the 40p rate the top rate of tax, which people would start to pay once they earned £45,000.

"It's a blue-collar platform, but for people that want to aspire to achieve absolutely anything," Mr Aker said.

UKIP leader Nigel Farage confirmed last month that the party was rethinking its economic policies and that it no longer backed a single rate of income tax.

In 2010, the party supported a so-called "flat tax", which it said would be set at 31% and would be achieved by merging income tax and national insurance.

But Mr Farage last month said he believed an appropriate top rate of tax was 40%.

He also announced that no-one earning the minimum wage or below should pay any tax on their earnings.

In July, Labour said the wealthiest should contribute more through a hike in the top rate of tax to 50p.

'Target foreign aid'

But David Cameron said the Conservative Party could make no promises about raising the thresholds for the top rate of tax, which currently kicks in at £41,865.

In its general election manifesto, the Lib Dems proposed a rise in the tax-free personal allowance to £12,500.

Meanwhile, Mr Aker also told Prospect magazine that UKIP's election manifesto would include plans to cut government spending, saying foreign aid was "an obvious target".

He outlined plans to ensure people who have worked for a long time before becoming unemployed would be entitled to a higher job seeker's allowance.

Mr Aker told the magazine that UKIP was "firmly against the bedroom tax" but supported the coalition's policy of a benefits cap.

The party would also block new migrants from claiming benefits until they had paid tax and national insurance for five years.

A pledge to abolish the Climate Change Act was also in place, Mr Aker said.


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