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Raising the basic rate income tax threshold to £12,500 will be a key manifesto pledge for the Liberal Democrats in next year’s general election, Danny Alexander will announce today.
The Chief Secretary to the Treasury will say any coalition deal must include a commitment to raise the allowance by at least £500 in the first budget of the new parliament.
Mr Alexander, the party’s chief negotiator, will unveil the plans in his speech to the Liberal Democrat spring conference later today.
Meanwhile, speculation is growing that Mr Alexander could replace Vince Cable as the party's 'shadow chancellor' at the general election.
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