Ninety-nine per cent of people would see their tax bills unchanged under plans set out by the Liberal Democrats, it was claimed yesterday.

The Lib Dems want a new 50 per cent rate of income tax on every pound earnt above £100,000.

That would affect just one per cent of people, according to party figures.

The party promised there would be no other tax changes - cuts or rises - aside from local government funding reforms.

The party's Treasury spokesman, Vince Cable, told the Lib Dem annual conference in Bournemouth that there was no "soft option" on tax.

People did not want to pay higher taxes but they did want the burden distributed more fairly, he said.

The new top rate of income tax would fund the party's flagship policies of abolishing university tuition and top-up fees and introducing free personal care of the elderly.

Dr Cable said a Lib Dem government would not need to raise National Insurance contributions.

He also pledged not to lower the threshold on the top rate of tax.

Tuesday September 21, 2004