Liberal Democrat leader Sir Ed Davey announced plans during his party's conference to cut taxes by raising the annual tax-free personal allowance to £15,000 and increasing the 40p income tax threshold to £56,000. The proposed £17 billion package would take effect in the fifth year of a Lib Dem government following the UK rejoining the EU single market and customs union. Davey criticized Reform UK's similar proposal as "cruel," arguing it would strip disabled people of crucial support.
Written locally by qwen2.5:14b on 2026-09-22,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The Liberal Democrats, led by Sir Ed Davey, are gathering for their party conference in Brighton from October 7th, aiming to address concerns about their recent lack of growth and relevance. Recent polling shows that 43% of respondents were unclear what the Liberal Democrats stand for, with over half describing them as "weak." Ahead of the conference, some MPs criticized Davey's leadership, urging a rediscovery of the party’s insurgent spirit rather than its current role as polite custodians.
Davey has outlined plans to focus on tax cuts and rejoining the EU customs union and single market, arguing that these moves will help ease cost-of-living pressures and stimulate economic growth. He also vowed not to give up fighting against what he terms "nasty populism," targeting parties like Nigel Farage's Reform UK and individuals such as Elon Musk.
Despite internal frustrations, Davey emphasized the party’s commitment to defending the NHS and countering anti-migrant sentiment. His speech highlighted past political activism, including a successful boycott of Barclays Bank over its investments in apartheid-era South Africa, linking this to current struggles against injustices both domestically and globally.
The conference seeks to reestablish the Liberal Democrats' profile ahead of future elections by addressing issues like tax reform and EU relations while countering populist rhetoric and policies. Davey's leadership aims to galvanize party members and supporters amid skepticism from some quarters about his ability to lead the party effectively.
Written for “Lib Dem Conference Speeches” on 2026-10-05,
grounded in this article and the 16 other(s) covering the same event.
- Published
The Liberal Democrats will fight the next general election on a promise to cut taxes for millions of workers, Sir Ed Davey has said in a speech to his party conference.
asserted
Davey → publish → conference
The Lib Dem leader said that if he gained power, he would raise the annual tax-free personal allowance to £15,000.
asserted
he → say → 15,000
He would also raise the 40p income tax threshold from £50,270 to £56,000, in a £17bn package funded by the economic boost he says would come from the UK rejoining the EU single market and customs union.
asserted
UK → raise → union
He claimed the plan would mean a £680 cut for "most taxpayers" but it would not come into full effect until the fifth year of a Lib Dem government - potentially up to eight years away.
asserted
it → claim → government
The announcement was greeted with sustained applause by Lib Dem MPs and activists in the Brighton conference centre.
asserted
announcement → greet → centre
The £12,570 income tax allowance was frozen by the Conservatives in 2021, resulting in more people being dragged into paying the tax, and Labour has so far resisted calls from trade unions and some of its MPs to unfreeze it.
asserted
Labour → freeze → it
The Lib Dems said they would raise the threshold to £15,000 a year, and increase the starting point for paying employee National Insurance (NI) to the same level.
asserted
they → say → level
At their conference earlier this month, Reform UK promised to increase the income tax personal allowance to £15,000 within 100 days if they won power.
asserted
they → promise → power
Sir Ed told the Lib Dem faithful "the difference between us and Reform" is that "their tax cut is paid for through cruelty."
asserted
cut → tell → cruelty
He said "Reform's figures show they'd pay for it by ripping £22bn of crucial support away from disabled people."
asserted
they → say → people
Under the Lib Dem plan, based on research by think tank Frontier Economics, external, the economic boost from rejoining the single market would allow the party to spend £17bn on tax cuts by the end of the next Parliament.
asserted
party → base → Parliament
The party says it would unfreeze personal allowances in the second year of a Lib Dem government, allowing them to rise with inflation, before bringing in big tax cuts in year five when the economic benefits of closer trading with the EU had kicked in.
asserted
benefits → say → EU
However, the move would depend on the party being able to negotiate a closer trading arrangement with the EU in just 12 months.
asserted
party → depend → months
Sir Ed has been under pressure this week to set out bolder policies, with his party languishing in fourth or fifth place in national opinion polls.
asserted
party → set → polls
He began his speech with a sombre and punchy attack on Reform UK leader Nigel Farage.
asserted
He → begin → Farage
He stopped short of calling Reform fascists, but drew a link between the fascists in Britain in the 1930s with what he called "thugs, in black shirts and balaclavas" in reference to the protests in Dover and Portsmouth in recent weeks.
asserted
he → stop → weeks
"This is a far-right movement that is given oxygen, and heat, and fuel by politicians and parties who claim to be serious contenders to lead our country," said the Lib Dem leader.
uncertain
leader → give → country
His solution is "community politics" that he argues is the hallmark of the Lib Dems.
asserted
he → argue → Dems
"It will take more than a manifesto.
asserted
It → take → manifesto
It will take a movement, rooted in decency, fairness and community.
asserted
It → take → decency
Liberal values," he said.
asserted
he → say → ?
Repositioning the Lib Dems as a tax cutting party is aimed at appealing to voters they are targeting in traditional Tory heartlands.
asserted
they → reposition → heartlands
And Sir Ed used his speech to attack Tory leader Kemi Badenoch over her policy shifts on climate change and human rights law.
asserted
Ed → use → change
"Millions of decent, moderate Conservative voters are getting her message, and they're turning away – increasingly, to us," he told the audience in Brighton.
asserted
he → get → Brighton
He took a swipe at Prime Minister Andy Burnham for failing to commit to rejoining the EU single market, something the Lib Dems say they would do in their first year in government.
asserted
they → take → government
Lib Dem sources refused to say whether the income tax plan would be a condition of joining a coalition government with Labour or another party, saying the party's aim was to get as many MPs as possible.
Sir Ed has ruled out a coalition with Reform UK, and dismissed suggestions he could do a deal with the Conservatives, as his party did in 2010.
The Lib Dem leader also addressed the potential threat posed by AI in his speech, saying that "handled badly, it concentrates more power in fewer hands than at any point in human history.
uncertain
it → refuse → history
He said Burnham's AI partnership with US president Donald Trump "doesn't come close to meeting the scale of this threat" and called for "a global treaty to press pause on super-intelligent AI now".
asserted
partnership → say → AI
He proposed "a new International AI Safety Agency - like we have for nuclear - to stop anyone from developing this technology recklessly."
Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments.
asserted
we → propose → moments
It'll be delivered straight to your inbox every weekday.
asserted
It → deliver → inbox
The Aporia
