Households earning more than £70,000 would pay more tax under Lib Dem proposals expected to be launched at the beginning of its party conference today.

Speaking prior to the conference, Lib Dem leader Sir Menzies Campbell said that to offset cutting the basic rate of income tax by 4p to 16p, taxes would be raised for higher earners.

Green levies, such as increasing tax on 4x4 vehicles, and removing taper relief on capital gains would be introduced. Households earning more than £70,000 would be the point at which they begin to pay more tax.

'Because, extraordinarily under a Labour government, the gap between rich and poor has become greater,' said Sir Menzies, reported the Daily Telegraph.

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Read about the Lib Dems' conference