The proposals published by the Liberal Democrat Tax Commission would -

• Save a typical pensioner couple around £1,600 a year through proposals including scrapping council tax ^(a)
• Save a typical double-earning couple around £1,500 a year through measures including a 2p cut in the basic rate of income tax ^(b)
• Lift two million people on low income out of tax completely across Britain by reducing the 10p tax rate to zero
• Take 1.3 million people out of the top rate of income tax nationally by raising the threshold to £50,000 p.a.

Andrew Falconer said: "The current system of taxation is not fair. The poorest 20% of households pay a bigger share of their income in tax than the richest 20%. Wealth inequality has actually risen since Labour came to power.

"These Liberal Democrat proposals will make the tax system fairer for those on low and middle incomes. Specifically this will benefit the vast majority of pensioners, key public sector workers and young professionals. These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles. has actually risen since Labour came to power.

"I look forward to supporting these proposals when they are debated and voted on at the Liberal Democrat Conference in Brighton in September."

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^(a) Figure based on a pensioner couple with a combined income of £15,000. See table for calculations.

^(b) Figure based on a double-earning couple earning the national median household income of £25,000. See table for calculations.