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The Liberal Democats should be judged on how we deliver our own agenda

Danny Alexander, chief treasury secretary, says the budget will set out progress towards the key Lib Dem promise on tax
Danny Alexander
Danny Alexander. Photograph: Christopher Thomond



This may take a little longer to prove wrong, but I am confident it will. Yes, the cuts are our cuts too. But I stand by our belief that these are essential to stabilise the economy, and to create the conditions for growth. Unlike Labour, who carried on spending long after they knew the money had run out, this coalition government is prepared to face up to the tough decisions that are right for the country.

But the coalition government is about more than balancing the books. It is about ensuring the economic recovery is in place to provide a platform for reform. And, unlike the previous one, this government takes key decisions through a collaborative process that involves the prime minister, deputy prime minister, chancellor and myself.

Liberal Democrats should be judged not only by how we deal with Labour's profligate legacy, but on how we deliver our own agenda. We may not have won the general election outright, but we are on course to deliver all four of our main priorities from our election manifesto. With a £2.5bn pupil premium, every child will get the chance for a fair start in life. The referendum on AV will give you a say in making MPs work harder for your vote. Investing in green jobs will not only support our economy, but will develop green technologies too.

And most importantly of all, this government will deliver a fair deal on taxes. Our ambition is that no one should pay any tax on the first £10,000 they earn. This will create a fairer country that helps those on lower incomes to help themselves. We took the first big step to get there last June, increasing the threshold by £1,000, from £6,475 under Labour to £7,475 this year. From next month, almost a million of the lowest paid won't pay any tax at all.

This change won't just help those earning less than £10,000. In fact, once you take all the coalition's personal tax changes into account, everyone earning under £35,000 will be better off.

Labour's debt-fuelled, Ponzi scheme approach to the economy left us with nearly a trillion pounds worth of debt. With money so tight, it is a sign of how important we believe raising the personal allowance is that we are still able to do deliver our election promise.

There is nothing more fundamentally liberal than saying those who work but receive least reward should pay no tax. That's why when the government unveils its budget on Wednesday we will set out further real progress towards our goal of taking anyone earning less than £10,000 out of tax altogether.


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