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The Guardian - UK
The Guardian - UK
Politics
Hélène Mulholland

Taxing debate for Lib Dem frontbench

Sir Menzies Campbell wasn't kidding when he told the Guardian's Michael White earlier today that, far from being worried about his keynote speech on Thursday, "it's Tuesday I'm worried about."

He might have said it with a toothy grin, but the anxiety is palpable about what will prove to be the scheduled highlight of this year's annual conference. Evan Harris, MP for Oxford West and Abingdon, is tabling an amendment for the motion on the party's proposed new tax policy which could undo a nicely-packaged set of "revenue-neutral" policies put together by the equally able Vince Cable, party Treasury spokesman.

The decision to impose punitive green taxes to protect the environment and balance out a cut in income tax has upset some of the rank and file since it means sacrificing the party's policy of increasing the top rate of income tax. Briefings and counter-briefings have been swirling around since yesterday and leaflets are flying off the presses, some saying "restore the policy" while others agree with the leadership that this tax on high income is part of another era, thought up before the Lib Dems started caring so passionately about the environment.

The policy in question, introduced by Charles Kennedy when he held the reins, would mean earnings over £100,000 were taxed at 50%. Harris's amendment calls for a 50% rate for anyone earning more than £150,000. That revenue could be used to lift the threshold on income tax and lift 300,000 people out of poverty, he and his supporters argue.

Dr Harris has briefed that the tax commission appointed to review the party's tax policies was split on whether to keep the 50% tax rate until a final meeting attended by Sir Menzies himself. Dr Harris believes ditching this "progressive" policy is a mistake he intends to put right. He will point out that the amendment has received more nominations from local parties than any other amendment selected or submitted for debate, something that is clearly worrying for a fresh leader keen to make his mark.

Sir Menzies has let his Treasury spokesman do the talking, warning that tomorrow will be a "test" of the leader and could lead to "difficulties" for the party if the sum total policy is voted down. Sir Menzies had been working up a mild air of insouciance as he claimed that, whatever happened, this would not be his "high noon" moment. But that was before the Lib Dem leader jokingly admitted his qualms to Michael White in front of the entire conference.

Dr Harris doesn't seem angry. He thinks the amendment speaks for itself. "Browbeating conference" would be counterproductive, he says. The beauty of the Liberal Democrats is that their conference is sovereign, the place where policy is made and not merely rubber stamped, as it is at Tory or Labour gatherings. "We have enough delegates with an open mind to consider it," he says of his chances of seeing the amendment backed tomorrow.

Just for good measure, Vince Cable used a lunchtime fringe to repeat, encore une fois, that the amendment, if passed, would do Sir Menzies no favours.

"It ain't personal," Dr Harris said as he crossed Mr Cable with an awkward grin in a hotel corridor on his way to writing his speech for tomorrow's debate. "Part of our disagreement is about how to carry the tax policy forward," he said. "We agree on most things. He is a charming man and a very effective speaker." Charming, but resolute. Mr Cable will also know that Dr Harris is a speaker to be reckoned with.

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