Greg Hurst, Political Correspondent
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The Liberal Democrats sought yesterday to prevent David Cameron from squeezing them at the next election as the party approved a series of green taxes to combat climate change.
Plans for a new aircraft tax, dearer road tax for new vehicles with higher carbon emissions and rises in fuel duty linked to growth of the economy were backed by the party’s conference.
They include further charges for freight lorries using motorways and on domestic flights, the proceeds of which would fund an expansion of the rail network.
Lib Dems believe their environment programme will prove tougher than those green policies that Mr Cameron will accept from the Conservatives’ quality of life policy group, which reported last week, after a backlash among grassroots Tories against green taxes.
The conference also threw out an attempt to change the party’s nonnuclear stance to embrace a limited programme of nuclear power stations.
An amendment to support the replacement of existing nuclear power facilities, proposed by the MEP Chris Davies, was defeated by a majority of about 2:1, meaning the Lib Dems remain opposed to nuclear power.
Party strategists see this as another important dividing line between them and Mr Cameron.
Chris Huhne, the Lib Dems’ environment spokesman, said that one of the Tories’ policy reviews, on competitiveness, wanted further airport expansion in South East England, while their quality of life review called for a moratorium. Mr Huhne said: “Cameron’s circus skills are going to be tested if he rides these two horses in opposite directions.”
Proposals for an aircraft tax would be charged per flight, replacing air passenger duty, and for higher vehicle excise duty for new cars based on their emissions, are similar to those recommended by the Tories.
Under the Lib Dem plans, which aim to make Britain carbon neutral by 2050, revenue from green taxes would be used to help fund a cut in the basic rate of income tax of 4p.
The party has pledged to scrap the council tax, replacing it with a local income tax. Senior Lib Dems calculate that the average rate of local income tax charged by councils would be 3.5p, meaning households with an income below £70,000 would be better off while those with higher incomes would be worse off.
The wealthy would also be hit by scrapping higher rate tax relief on pension contributions, which would be limited to the basic rate, and by an extension of capital gains tax by axing taper relief that limits tax paid on assets held after a certain period.
Vince Cable, the party’s Treasury spokesman, told the conference: “Unlike the Tories, we have a fully costed, independently assessed, alternative package – leading to a 4p cut in national income tax, financed by green taxes and higher taxes on the wealthy. We’re honest about it.”
He argued that higher taxes on the very rich would be popular with voters and said the Lib Dems would end the use of nondomicile resident status to avoid paying tax.

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