Clegg urges fight for 'fairness'

Nick Clegg will attempt to rally the Liberal Democrats with a call for new taxes on the wealthy, as activists gather for the party's annual conference in Brighton.

Liberal Democrat conference: Clegg to call for tax on wealthy

By Justin Parkinson Political reporter, BBC News, in Brighton

Nick Clegg acknowledged that the summer had been a tough and challenging time for the Lib Dems

Liberal Democrat conference 2012

Nick Clegg will attempt to rally the Liberal Democrats with a call for new taxes on the wealthy, as activists gather for the party's conference.

He will urge lower taxes for workers doing a "proper shift", but higher rates for those "sitting on a fortune".
His party's calls for a one-off tax on "unearned wealth" have been rejected by its Conservative coalition partners.
Meanwhile, Lib Dem deputy leader Simon Hughes refused to rule out a coalition with Labour in the future.
Mr Clegg is under pressure amid growing disaffection among party members with the coalition and speculation about his future.
'Hold our nerve' Arriving at the conference in Brighton, he said: "It is a tough time economically for the country and it has been a challenging time for the Liberal Democrats politically.
"But I don't want anyone to be in any doubt: the Liberal Democrats are going to hold our nerve and see this through."
Around 200 protesters gathered on the seafront, holding placards opposing the coalition's spending cuts, and chanting: "Lib Dems. Shame on you."

Analysis

Iain Watson Political correspondent, BBC News

Nick Clegg's part of the bargain is this: he won't go in to coalition with any party after the 2015 election that would cut spending but not simultaneously increase tax on "unearned" wealth.
But the small print in Mr Clegg's pledge is important. He will remind his party members that the Lib Dems are outnumbered around the cabinet table - and if the rank and file want new wealth taxes introduced, they will have to go out and make the political argument for them.
Labour's Ed Balls has strongly hinted that Labour would be happy to introduce the Lib Dems' much-prized "mansion tax" on expensive homes. So there is at least the possibility that there might be a different coalition in prospect in future.
But in the end, it is the verdict of the voters that will determine the make-up of the next government rather than the manoeuvring of the politicians.

Earlier in the week, the deputy prime minister made a filmed apology over his failure to honour a pledge to oppose an increase in university tuition fees in England.

He said the party regretted breaking its promise, made before the 2010 general election, and would learn from its mistakes.
One exhibitor's stand at the conference is selling mugs with a picture of Mr Clegg on one side and the words "I'm sorry" printed on the other.
Speaking at a rally of activists later, Mr Clegg is due to defend the Lib Dems' record in government, saying the arrangement with the Conservatives has not been "easy" but is still "right" for the country.
"We have avoided an economic catastrophe. We have steadied the ship. Now we must set it sailing," he will say.
He will argue the government must go further in reducing the tax burden on low and middle-income families, building on a commitment to lift the threshold at which people start paying income tax to £9,205 by next April.
"Liberal Democrats will not stop fighting to make this government and this country fairer," he will say.
"It's just wrong that people on low and middle incomes who work hard and play by the rules are taxed so much while Russian oligarchs pay the same council tax as some people do on a family home."
'Logic' The Lib Dems have long called for higher taxes on "unearned wealth" - either through increases in capital gains tax or the introduction of a "mansion tax" on properties worth more than £2m or a one-off levy on the assets of the super-rich.
In an interview with the Daily Telegraph, Simon Hughes said he intended to visit this year's Labour Party conference, adding: "If the electorate decided they wanted a government of the centre and centre-left, we would play our part in it."
He also suggested the wealth tax might secure at least some Conservative support.
"There are certainly some Tories who see the logic of a fairer system in terms of property taxation," he tells the paper.
"The debate can't be entirely about cuts in benefit and the welfare budget - we have to address the tax issues and the wealth disparity issues."
So far the Conservatives have rejected the mansion tax idea and Mr Clegg will urge Lib Dem activists to exert pressure on Chancellor George Osborne by delivering three million "fair tax" campaign leaflets to homes by the end of the year.
Laws speech The Lib Dems were criticised for agreeing in March's Budget to reduce the 50% tax rate on top earners to 45% next April - with Labour saying it would benefit a small handful of millionaires when the majority were seeing declining living standards.
Also on Saturday, education minister David Laws will announce more support for schoolchildren from the most disadvantaged backgrounds through the Lib Dems' flagship "pupil premium" policy.
Funding for the scheme will rise from £600 to £900 per child next year, amounting to a £300,000 increase for a primary schools with 1,000 pupils in which a third qualify for the extra assistance.
Mr Laws will say funding through the premium will also rise again in 2014, fully delivering on a 2010 manifesto pledge.
The move comes days after Ofsted chief Sir Michael Wilshaw said the policy was having little impact on many schools.
Activists will also hold debates on childcare and the future of the House of Lords.

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