U.K. Lib Dems wrangle over tax policy

BLACKPOOL, England, Sept. 20 (UPI) -- The British Liberal Democrats needs to remodel themselves as a party of progressive taxation, not higher taxation, its treasury spokesman said Tuesday.

Speaking at the party's annual conference in Blackpool, Vince Cable said there would be "no credibility whatsoever" for the Lib Dems in promising to spend more than Labor.

"I believe our central message should be fairer taxes; not higher taxes," he said.

Cable's comments come amid an ongoing debate about the party's future direction.

He said he was confident consultation would produce a consensus behind a tax system that was "simpler, more progressive, more decentralized, more environmentally focused -- and that lifts many people on low incomes out of tax altogether."

However senior Lib Dem figures signaled their opposition to dramatic changes in tax policy Monday, pointing to a rift between the Liberal left and party modernizers.

Deputy leader and Foreign Affairs Spokesman Sir Menzies Campbell told a conference fringe meeting he had no problem with the 50 percent top rate of tax proposed before the last election, and saw "no reason" why those earning over $180,000 should not make a greater contribution.

But Deputy Treasury Spokesman Chris Huhne declared his support for change, saying: "The 50 percent top tax rate is now looking in international terms quite uncompetitive... and there are alternative ways of being redistributive."

Party Leader Charles Kennedy refused to give his views when pressed on the subject Monday. However he came out in strong favor of a controversial motion to privatize parts of the Royal Mail, over which he suffered an embarrassing defeat at a party vote Tuesday.