Danny Alexander, Chief Secretary to the Treasury, has issued a warning that overall taxation will not be cut within the next five years. The Liberal Democrat has the responsibility of reducing the £155bn deficit and has stated that the tax burden is a necessity as part of the plan to straighten the UK’s finances.

Many, including Conservative MPs, were hopeful that the government’s programme of budgetary reductions would allow for some tax reductions in the next five years. When asked whether reductions in taxes would be a possibility once the UK’s finances were in order, Alexander replied:

“You are asking me to take decisions for five years down the line now and I am not going to do that. What I want to see is a rebalanced and fairer tax system. That is what I think is most important.”

Plans have already been made to reduce the tax paid by lower earners, by gradually increasing the personal allowance to £10,000. This will encourage people on low wages to get back into work, by increasing their net pay. High earners will not see any tax cuts until 2015.

Alexander has also made it clear that the coalition government intends to re-balance the tax system, and the revenue gained from increased taxes will help to reduce the public deficit. This has come after accusations that the Liberal Democrats had signed up to policies that impact upon the poor much harder than the high earners.

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