HAIN EXPOSES BROWN'S DIRTY SECRET ON TAX

12.00.00am BST (GMT +0100) Fri 20th Jun 2003

Responding to Peter Hain's proposals to make the tax system fairer, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said: "Peter Hain has exposed Gordon Brown's dirty secret that under Labour ordinary tax payers are paying more, while the very rich have been protected."

"A fairer tax system is long overdue. But Peter Hain's proposals would hit too many people too hard. If Labour really want a fair tax system they should axe the Council Tax and use a system based on income."

"Fair income tax requires a 50% rate on any income over £100,000, raising £4.5bn per year enabling the abolition of unfair stealth taxes like student tuition fees and health charges on the elderly."

ENDS

NOTES TO EDITORS: The Liberal Democrats are the only opposition party with firm, costed tax proposals launched in our Alternative Budget in February 2003.

We would stick to Labour's overall spending limits but:

• Increase the basic state pension, with £5 a week extra for all

pensioners, £10 extra for the over-75s, and £15 a week extra for the over-80s, by scrapping the complex pension credit;

• Provide free care for the elderly from unspent NHS funds.

• Spend £2 billion more to get our railways back in shape using the Chancellor's unspent Capital Modernisation Fund.

• Guarantee long-term funding for the NHS by turning National

Insurance into a permanent NHS contribution

• And raise enough money to scrap Labour's unfair tuition and top-up taxes on students, plus cut £100 off every council tax bill, by asking instead those earning over £100,000 to pay a little more.