How Ming could haunt a hung parliament

Liberal Democrat opinion poll ratings have fallen under Ming Campbell. But a hung parliament at the next election could force Gordon Brown to turn to them for support.

Sir Menzies Campbell opened this week's Liberal Democrat conference with an "astonishing pledge" to "hammer" up to two million middle-class families, said Ian Drury in The Daily Mail. If it ever gains power, the party plans to cut the basic rate of tax by 4p to 16p, replace council tax with a local income tax and introduce a raft of green levies. It also wants to abolish tax "loopholes" used by the super-rich, including the much-criticised tax taper relief, which has allowed private equity bosses to divert millions away from the Treasury and into their pockets. The package would affect couples earning more than £70,000 and single workers earning more than £46,000 and "especially punish" people living in London and the southeast, where incomes tend to be higher.

Ming's argument, that he wanted to penalise people who had done "too well" under Labour, is a "childish throwback to the politics of envy", said Rachel Sylvester in The Daily Telegraph. True, the wealth gap is widening, but those he wants to "clobber" hardly qualify as the "super-rich". Policeman and teachers, for instance, can earn more than £70,000. And the Lib Dems were "disingenuous to say the least" in their use of research to support their tax plans. They claimed a YouGov survey showed that 64% of people supported higher taxes on the rich, omitting to mention that the poll defined rich as "millionaires and those earning over £100,000". By trying to curry favour with his left-wing grassroots activists, Ming risks alienating the middle-class voters whose support he needs to win key seats.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.