THE minister who will lead the Liberal Democrat negotiating team at next year’s General Election will today say that one of his party’s key demands will be raising the personal income tax allowance to £12,500.

Treasury Chief Secretary Danny Alexander, the keynote speaker on the second day of the Lib Dem conference at the Barbican in York, will confirm that increasing the threshold will be in his party’s manifesto.

A rise of at least £500 – meaning a £100 tax cut – would be earmarked for the first Budget or Autumn Statement after next May’s poll.

Mr Alexander will say: “We will fight the next election with our own ideas, our own policies, our own values – no-one else’s – and I can tell you that a top priority in any negotiation will be our aspiration to raise the personal allowance dramatically again in the next Parliament.”

Mr Alexander will also state the economic recovery was a Lib Dem achievement by saying: “Britain is on its way back. 

“Every job that’s been created, every apprenticeship opened up, every pension boosted, has our Liberal Democrat DNA running through it.”

Mr Alexander has been appointed to lead talks with the Tories or Labour if next year’s election throws up the possibility of another coalition.

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