Davey promises tax cuts for millions if UK rejoins EU single market

Image source, EPA By Brian Wheeler Political reporter Published 10 minutes ago The Liberal Democrats will fight the next general election on a promise to cut taxes for millions of workers, Sir Ed Davey has said in a speech to his party conference.

The Lib Dem leader said that if he gained power, he would raise the annual tax-free personal allowance to £15,000.

He would also raise the 40p income tax threshold from £50,270 to £56,000, in a £17bn package funded by the economic boost he says would come from the UK rejoining the EU single market and customs union.

He claimed the plan would mean a £680 cut for "most taxpayers" but it would not come into full effect until the fifth year of a Lib Dem government - potentially up to eight years away.