The
UK Independence Party has said it would cut income tax from 40p to 35p for
people earning up to £55,000.
At
its party conference, UKIP will also promised to raise to £13,500 the amount
people can earn before paying any income tax. In
a plan to win the "blue-collar vote", Nigel Farage's party pledged to fund the
changes by leaving the EU and cutting UK foreign aid by 85%. Mr
Farage said he expected UKIP to have "real influence" after the election.He
told the BBC it was important that people thinking of voting for UKIP knew what
his party would be "fighting for" in the event of a hung Parliament next
May.
Mr
Farage addressed an estimated 2,000 activists at the conference at Doncaster
Racecourse - which is near Labour leader Ed Miliband's constituency. Mr
Farage was expected to make a direct appeal to Labour voters, claiming the
opposition has failed to stand up for the people it was founded to
represent.
Tax
cuts
At
present the tax-free
"personal allowance" applies for
income up to £10,000, then a "basic rate" of 20% is paid on earnings up to
£41,865.
The
40p rate is payable on income from £41,866 to £150,000, with the "additional
rate" of 45% paid on anything over £150,000.Under
UKIP's plans, everyone earning between about £44,000 and £55,000 would pay
income tax at 35p. Those earning more will pay 40p, with the additional rate
scrapped.
By
Ross Hawkins, political correspondent
Eight
years have passed since David Cameron dubbed UKIP's members fruitcakes, loonies
and closet racists. At
their conference a man hands out free fruitcake, as a reminder. You
could almost believe nothing had changed. Almost. But
MEPs mix with defectors from other parties here. Lobbyists buttonhole members.
Rumours of another defection swirl.
They
discuss the chances of troubling Labour in the coming by-election in Greater
Manchester as much as they worry Conservatives in Clacton. Still
they style themselves as political outsiders: a powerful pitch to voters fed up
with the other parties. Rival
politicians don't tend to insult UKIP members any more. But
the party that insists it's nothing like the others doesn't want voters to
forget their jibes.
Mr
Farage said the tax changes would cost £12bn but it could be paid for by the UK
leaving the EU, cutting back the foreign aid budget and not going ahead with the
HS2 rail link.
"It
is a lot of money, I agree," he said. "But there are a range of measures there
that would more than cover these tax cuts. We are not promising the earth
because it [the policy] is costed.
"We
have argued for many years that people on low salaries shouldn't be paying tax
because it is a huge disincentive to come off benefits and because their living
standards are going down each year because of the increase in prices.
"By
pushing for this hard, I would not be surprised if one or more of these parties
adopted this line and we helped to shift the agenda."UKIP
economy spokesperson Patrick O'Flynn said the party wanted to reform the Barnett
formula, which is used to calculate benefits per head given to people in
Scotland, Wales and Northern Ireland.
"By
reforming the Barnett formula, which so unfairly discriminates against English
taxpayers, you can save several billion," Mr O'Flynn said.
Parliament
recall
Mr
Farage has claimed it is not inconceivable that the party could hold the balance
of power in the event of an inconclusive general election
result.
