Lib Dems vow to take tough action on bankers' bonuses

THE Liberal Democrats yesterday promised to overhaul the tax system and come down hard on bankers' bonuses in a bid to woe voters.

They would raise the income tax threshold to 10,000, leaving 3.6 million people no longer having to pay.

The policy would cost 16.8 billion and would be funded through closing loopholes exploited by the rich, cracking down on tax avoidance, and introducing a mansion tax on homes worth more than 2m.

Liberal Democrat leader Nick Clegg, who will unveil his manifesto tomorrow, also promised to prevent loss-making banks paying discretionary bonuses.

He said: "Bankers must understand that after the billions pumped into the banking sector, there can be no financial or moral justifications for the obscene bonuses which are still being paid out. There must never again be rewards for failure. It's simple: if you're not making money, you shouldn't have a bonus."

In Scotland, the Liberal Democrats launched a Highlands manifesto yesterday, including fairer fuel prices and broadband for remote areas.

Scottish leader Tavish Scott said: "We need fairness in petrol pricing – and the Liberal Democrats' plan for a rural fuel discount scheme will deliver it."