The government should reduce the tax burden on lower income families, according to the Liberal Democrats.
Nick Clegg, the leader of the centre-left party, has claimed that funds could be raised for a cut by closing off tax loopholes which benefit the wealthy.
In yesterday's (29 October) Prime Minister's Questions session, Mr Clegg argued that tax breaks for families "wouldn't require extra government borrowing" and "would be good for the economy."
"Why won't the Prime Minister give people on ordinary incomes some of their money back?" he asserted.
In response, Prime Minister Gordon Brown said that his party had been shutting off tax loopholes for the last 11 years, and highlighted the government's policy to provide an increased winter fuel allowance this year.
The government has also been under pressure from the Conservative Party in recent weeks to procure more contracts to small businesses.
Financial News
Tax cuts for families, say Lib Dems
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