People in the Oldham area call for a cut in basic income tax

10.36.59am GMT Wed 18th Mar 2009

In a recent survey, 95% of respondents in Oldham East & Saddleworth have overwhelmingly backed Liberal Democrat plans for a cut in the basic rate of income tax of 4p, from 20p down to 16p in the pound.

Elwyn Watkins, Liberal Democrat parliamentary spokesperson for Oldham East & Saddleworth, said:

"Virtually everybody in Oldham, Shaw, Lees and Saddleworth would benefit from a cut in income tax, which would be funded by closing tax loopholes used by only the very richest few.

"At a time of severe economic hardship for many, an income tax cut like this would put an average of £400 a year back into people's pockets. In turn this would boost the cash people have to spend in local businesses and mitigate the worst effects of the recession.

"This Labour government has got its tax priorities completely upside down when a rich hedge fund manager can boast of paying less tax than his cleaner."

Almost a thousand people in Oldham East & Saddleworth responded to the survey on the cost of living and the economy.