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12 May 2008
Liberal Democrat leader Nick Clegg is set to enter the debate on tax today with a speech demanding that loopholes for the City be scrapped and that corporation tax should be cut instead.
According to The Financial Times Clegg will acuse the Treasury of creating unnecessary loopholes for the City which effectively amount to tax avoidance. However, it remains unclear which loopholes Clegg has in mind.
Clegg will however say during his speech to financial services grandees at the Gherkin, that the Lib Dem policy of 50% income tax for high earners has been abandoned, but will emphasise that 40% should mean 40%.
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