Liberal Democrats in Luton have called for a cut in income tax for people on low and middle incomes to help them beat the recession.

“Inflation is at its highest for years,” said Cllr Qurban Hussain, Liberal Democrat Parliamentary Spokesperson for Luton South.

“Residents of Luton are struggling with rising fuel and housing costs. They need money in their pockets now.”

The Liberal Democrats are calling for a cut in income tax of 4p in the pound. They say it will be paid for by closing the loopholes used by the most wealthy to avoid paying tax. They also promise to increase the level of tax on the most polluting activities.

They point out that many residents on low incomes are paying more in tax following the government’s decision to double the starting rate of income tax to 20p in the pound. Though the government was eventually forced to come forward with a package to compensate people for the tax increase, many are still worse off.

“Too many people are faced with the prospect of either eating properly or heating their homes. Action is needed now to help residents of Luton who are struggling with rising prices.” says Cllr Hussain.

“Cutting income tax will therefore give residents and our local economy a boost at a time when it is desperately needed.”