Nick Clegg is set to lay out his financial plans for after the general election today, and will reveal that he will raise £8 billion through a levy on banks, mansions, and wealthy foreigners.
Nick Clegg
With just three months to go until the General Election, Clegg is setting out his financial and economic vision for the country should he win the election or form part of a coalition. The Guardian has reported that £30 billion needs to be saved by 2017-18 to help balance the books in the UK.
It is believed that nearly half of that will be raised from tax rises and clamping down on those who avoid tax in this country. It is believed that £6 billion could be raised by tackling the tax avoidance problem, while a further £4 million will be saved through the mansion tax and tax rises on banks and wealthy foreigners.
However, it is not all good news from the Lib Dems, as there will be a further £4 billion cut to welfare - but that is much lower than the £12 billion cut that is being proposed by the Conservatives. At the same time, Clegg is planning to raise benefits - except pensions and disability benefits - by 1% for the first two years of the new parliament.
There could be more cuts a little closer to home with the removal of free winter fuel payments, free TV licences and free bus travel for the wealthier pensioners.
The NHS is set to play a big part in this year's general election, and Clegg looks set to promise that NHS funding would be protected should he find himself in Downing Street.
Mr Clegg will say: "We will finish the job of balancing the books but we will finish the job fairly. It is incomprehensible to most people that you would try to balance the books without asking for a contribution from the wealthiest people in our country.
"Liberal Democrat plans are for a bigger tax contribution from those who can afford to pay - the wealthiest individuals and big businesses which are not always paying their fair share. If public services and the most vulnerable in society are to be protected, then the wealthiest and big business will have to pay their fair share."
Clegg looks set to reveal a plan that will attempt to protect low and middle-income families, while making the wealthy pay more and stop those who avoid paying tax completely. The Liberal Democrats are aiming to strike a balance between tax rises and welfare cuts - which is stark comparison to the Tories, who are against raising tax and are looking to commit to harsher cuts to save money.