Liberal Democrat Deputy Leader Simon Hughes has defended Nick Clegg’s stance on the 50p tax rate.
In an interview with the Independent, the Deputy Prime Minister said he may veto Tory plans to scrap the rate, which applies to people who earn more than £150,000.
Speaking to Sky News at the LibDem party conference in Birmingham, Hughes said:
“The issue for us is how to get a fairer society. Under the Tory government, the gap between the rich and the poor widened, under Labour the gap widened still further…
“As we rebuild the economy… we want there to be a fairer Britain at the end of it. How do we do that? We lift poor people out of tax… you do not start by taking tax away from those who have the broadest shoulders.”
A recent report by the Institute for Fiscal Studies said that the tax has led to high earners resorting to legal tax avoidance schemes, which costs the treasury up to £500 million.
Hughes conceded that there may be a more efficient way to tax the rich rather than the 50p rate.
“Perhaps a tax on houses,” he said, “but let’s concentrate on all the people who are struggling to make ends meet.”
One NHS reform, one of the potential flashpoints at the conference, Hughes cited the LibDem’s role on getting the Health and Social Care Bill amended, even though it still doesn’t go far enough for many members of his party.
“We’ve achieved great things already in improving the bill," he said. "The NHS is a treasure… and we’re determined to get the best possible bill."
Despite the LibDem’s poll rating hitting its lowest level for 14 years, Hughes remained upbeat on morale within the party.
“There was a lot of exuberance when we came to the party conference last year. Then we had the difficult issues of tuitions fees, the referendum and the first really tough budget…so people are more realistic.”
Hughes said that party members realise that the coalition is a five-year plan. "We’re chipping away at the issues that matter to Liberal Democrats,” he said.