The new leader of the Liberal Democrats has outlined plans to cut income tax and pay for it by raising green taxes.

Nick Clegg, in an interview with the Daily Telegraph today, rules out a 50% tax rate for those earning more than £100,000.

'Let me be clear, I will not be seeking to introduce a 50% tax rate for earnings over £100,000 and I will not be seeking to increase the overall tax burden on the British economy,' he said.

He also proposed a four pence cut in the basic rate of income tax, funded by £6.7 billion worth of new green levies on polluting cars, aircraft and other polluters.

He also plans to strip pensions of higher-rate tax relief and reform capital gains tax.

Further Reading:

Read the Interview in the Daily Telegraph