SIR Ed Davey today promised Brits a £680 tax cut — but only if his plan to cosy back up to the EU delivers billions in economic growth.
The Lib Dem leader unveiled plans to raise the tax-free personal allowance to £15,000 and lift the threshold for paying 40p income tax to £56,000.
But the £17billion giveaway would not be fully delivered until the fifth year of the next Parliament.
And it relies on the party first striking a deal to take Britain back into the EU Single Market.
Sir Ed insisted the plan would not require extra borrowing, spending cuts or tax rises elsewhere.
In his keynote speech at the Lib Dem conference in Brighton, he said: “Because we will pay for our tax cut fairly and honestly.
“Not with more borrowing. Not with fantasy spending cuts that never materialise. Not by hiking your taxes by stealth elsewhere.
“We will pay for it from the dividends of growth. The growth that comes from our bold new partnership with Europe.
“Closer trade brings growth. Growth brings tax revenue.
“And we will give that revenue back to the people who created it in the first place – the British people, through their work, every single day.”
But Lib Dem officials admitted afterwards the tax cuts depend on first securing a deal with Brussels and then getting the economic boost they expect.
Asked what would happen if negotiations took longer than planned, a spokesperson for Sir Ed said: “I am not going to speculate on that.”
The tax offer comes as the party leader tries to give the Lib Dems a clearer identity after grumblings inside the party that it is struggling to cut through.
South Cotswolds MP Roz Savage warned ahead of conference that the party was “struggling for relevance”, while Devon council leader Julian Brazil told delegates it risked “sleepwalking into irrelevance”.
Polling published ahead of the Brighton gathering found 43 per cent of Brits said it was unclear what the Lib Dems stood for, while 42 per cent answered “don’t know” or “who?” when asked to describe Sir Ed.
The Lib Dem leader has rejected the criticism and insisted he will lead the party into the next election.
Sir Ed also used his speech to lash out at Reform and the Tories as he battles to win over one-nation Tories.
He accused Nigel Farage of being “eager to fan the flames of hatred and intolerance to make himself richer” and claimed “millions of decent, moderate Conservative voters” were increasingly turning to the Lib Dems.
Tory deputy leader Alex Burghart blasted Sir Ed’s speech, saying: “Ed Davey has forgotten that you have to pay for access to the Single Market and Customs Union, giving up control both of your borders and your trade policy as well as your cash.
“He wants to turn back the clock, taking us back to 2016.”
Reform’s Treasury spokesperson also said: “At this rate, the Lib Dems’ fantasy economics would make Liz Truss blush.
“The socks-and-sandals brigade would have to make the same choices we will: Cut the benefits bill, end net zero handouts, and slash foreign aid. But they refuse because they are incapable of putting the British people first.”
Sir Ed also called for a global treaty to “press pause” on super-intelligent AI and a new International AI Safety Agency modelled on the nuclear watchdog.
He warned: “Some of the very scientists and engineers building this technology are warning that super-intelligent AI could – and this is a direct quote – ‘kill us all’.
“That is not science fiction. That is a live warning, from the people who know.”
Ed Davey found £17billion down the back of a sofa in Brussels
By , Chief Political Correspondent
THE LIB Dems have spent all week in Brighton explaining why nobody is listening to them.
Apparently, being sensible is the problem.
In an age when Reform and the Greens are grabbing attention with big, bold promises, the Lib Dems say they are the boring moderates lumbered with nuance, compromise and difficult choices.
Then Ed Davey found £17billion down the back of a sofa in Brussels.
His big conference offer is a £680 tax cut for millions of Brits, paid for by an economic boom he says will follow Britain going back into the EU Single Market.
But there are a few steps before payday.
First the Lib Dems have to win power, then persuade 27 EU countries to do a deal, get it wrapped up within a year, wait for the economy to grow and finally collect enough extra tax to start handing the proceeds back.
Us reporters had the tedious idea of asking what happens if Brussels takes longer than expected
“I’m not going to speculate on that,” came the answer.
And what if the promised billions don’t turn up? Again, nobody fancied dwelling on that particular cloud in the sunny Lib Dem forecast.
This is the party, remember, that says everyone else is ducking the difficult choices.
Yet its own big economic offer requires no tax rises, no extra borrowing and no painful spending cuts – just a deal with Brussels and a great big dollop of growth.
Perhaps the Lib Dems really have cracked economics.
Or perhaps “sensible” politics looks rather different when somebody finally asks to see the receipt.
