The Liberal Democrats would seek to rejoin the EU’s single market, they revealed at their manifesto launch today.
Their 116-page document states the party would “aim to place the UK-EU relationship on a more formal and stable footing by seeking to join the single market”.
While regaining EU membership “remains our longer-term objective”, the policy platform states.
Leader Sir Ed Davey told reporters: “We’ve made clear time and again that we are a pro-European party who believe that our country’s interests are best served by working with other countries for mutual benefit.
“We believe in the long-term we need to be back at the heart of Europe. We’re not going to pretend that’s going to be easy.”
Davey said the Conservatives had “poisoned Britain’s relationship with our nearest neighbours” but insisted: “I believe I could get a much better trade deal than the dreadful trade deal Boris Johnson got.
“That would really help our economy, it will help small businesses, exports, farmers, fishermen.”
Sir Ed launched the manifesto in Islington, north London, which has a strong focus on health and care throughout its 22 chapters, ahead of the general election on July 4.
Titled ‘For A Fair Deal’, other than on the EU, it sets out that they would fund a £9.4bn NHS and social care package in England by increasing bank taxes and closing loopholes used by the super-rich.
The party proposes to raise the cash for its investment plans by restoring the bank surcharge and bank levy revenues to real-term 2016 levels, which they called “reversing Tory tax cuts for the big banks”.
They also propose hiking the digital services tax on social media firms and tech giants to six per cent; and introducing a four per cent tax on share buyback schemes by FTSE-100 firms, which they say would “incentivise productive investment, job creation and economic growth”.
Plans to reform capital gains tax (CGT) are described in the manifesto as “clos[ing] loopholes exploited by the super wealthy”.
But in a manifesto costings document, the party says they would do this “fairly” by “adjusting the rates and basing them solely on capital gains while increasing the tax-free allowance from £3,000 to £5,000, on top of a new tax-free allowance for inflation and introducing a relief for small businesses.”
Asked during the Q&A if his tax plans could harm the Blue Wall vote, home to City workers, Davey insisted: “The vast majority of people who pay CGT are going to get a tax cut.
“It’s not that I ever take leaves out of the Conservatives’ book – because this is properly costed – but this is a tax cut for the vast majority,
“The fact that we’ve got an increased allowance for people, we’ve got small business relief, that we’re introducing a new inflation allowance.”
He added: “Let’s remember only 0.9 per cent of people pay CGT.”
The Conservatives, the Green Party and Labour are also expected to set out their election pledges this week.