Nick Clegg says economic realities have changed The Lib Dems are to drop their pledge to cut the overall tax burden at the next election in light of the worsening economic situation. Leader Nick Clegg won a battle at the party's 2008 conference to put a broad tax-cutting message at the heart of the party's next election manifesto. But Mr Clegg told the Financial Times net tax cuts were now "implausible" given the state of the public finances. The party says it is still committed on a 4p cut in basic income tax. Tough choices A spokesman said its longstanding pledge to cut the headline rate of tax from 20p to 16p was still "fundamental". But Mr Clegg is following Conservative leader David Cameron in adjusting his party's sights given the budgetary constraints expected after the next election. Mr Cameron has warned tough choices will be needed on tax and spending if spiralling public deficits are to be brought under control and said reducing debt levels would be a priority. The government is also reported to have postponed its Comprehensive Spending Review amid speculation it will also need to revise its spending projections. An announcement is expected in the Budget later this month. In September, Mr Clegg won the backing of his party to give some of the £20bn he claims the party can save from cutting government waste back in additional tax cuts for low and middle income earners. A minority within the party opposed the move, which marked a significant shift in Lib Dem policy, which had seen it fight general elections on a tax-raising platform. Now, Mr Clegg has acknowledged reducing the overall tax take, in the short term at least, given the deterioration in the state of the public finances. The Lib Dems have broadly backed Labour's plan to sharply increase borrowing - which ministers say is necessary and sustainable - to help the economy through the recession. But they have attacked many of the government's measures, such as the 2% VAT cut, as flawed and ineffective. Mr Clegg said his long-term goal was still to cut taxes and he would focus on redistributing the tax burden by ending tax breaks for the rich and tackling tax avoidance. And while accepting the state may have to grow in the short term, Mr Clegg said politicians had to be honest about where spending cuts may have to come from in the next Parliament. Beyond existing commitments to scrap ID cards and government "baby bonds", Mr Clegg said areas such as public sector pension entitlements and university enrolment targets could be looked at.



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