ON THE economy, the Liberal Democrats will introduce a new tax of SOP in the pound for those earning over £100,000. The addition of 1p in the pound on the basic rate of income tax will not only improve Britain's educational base but will begin the "long-term shift" in taxation to concentrate on environmental issues.
In government, the Liberal Democrats will increase personal allowances to free 500,000 of the lowest paid workers from paying tax. The Bank of England will become a UK Reserve Bank, "free from political interference" and accountable to parliament for keeping inflation low. High street banks will be encouraged to develop new sources of private finance - including grants, equity finance and mutual guarantee schemes, so that small businesses can flourish.
In the long term, economic stability will be achieved by keeping to the "golden rule" of public finance: "total borrowing should not exceed total investment." Obvious it may be, but the Liberal Democrats plan to stick to their manifesto promise by cutting "wasteful" spending in government and "ensuring" that new spending delivers "value for money".
A new Office of Utility Regulation will be created, answerable to a government minister. The office will contain a regulatory board for each of the privatised utilities and will ensure excess profits are reinvested to reduce prices.