Davey promises tax cuts for millions if UK rejoins EU single market

The Liberal Democrats will fight the next general election on a promise to cut taxes for millions of workers, Sir Ed Davey has said in a speech to his party conference. The Lib Dem leader said that if he gained power, he would raise the annual tax-free personal allowance to £15,000. He would also raise the 40p income tax threshold from £50,270 to £56,000, in a £17bn package funded by the economic boost he says would come from the UK rejoining the EU single market and customs union. He claimed the plan would mean a £680 cut for most taxpayers but it would not come into full effect until the fifth year of a Lib Dem government - potentially up to eight years away. The announcement was greeted with sustained applause by Lib Dem MPs and activists in the Brighton conference centre.