LibDems unveil 'alternative budget'

LONDON, Feb. 28 (UPI) -- Britain's Liberal Democrats plans for the economy ahead of the coming election include an increase in the top rate of tax.

Should the party win the election -- expected on May 5 -- those earning more than $192,000 will pay half in taxes.

The party's "alternative budget" also includes plans to replace the council tax -- which households pay to local authorities based on property type -- with a means-tested local income tax.

They also propose raising the threshold for stamp duty from $115,000 to $288,000, which they say would benefit first time buyers.

Both Labor and Conservatives said the party would have difficulty funding their $960 million plan.

But Lib Dem Treasury Spokesman Vince Cable dismissed criticism, saying the party would shift more of the tax burden to higher earners.

The rise in the top income tax rate would raise about $10.3 billion a year, but would be capped to ensure it did not undermine incentives to earning higher salaries, he said.

Cable told BBC News his proposals to abolish tuition fees for students and charges paid by the elderly were "carefully costed".

"The big idea is trying to make the system fairer."