The Liberal Party notes media speculation of potential tax rises in the autumn budget to fund a £30 billion budget deficit following revisions to cuts to welfare benefits.
The party believes that sufficient scope exits to properly fund public services, and to create a modest liberal redistribution of wealth through reform of the tax system, and the range of tax rebates, allowances and exemptions.

We support raising the threshold for paying income tax to £20k to allow people to retain more of their earnings and to reduce in work benefits, thus simplifying the benefits system and cutting administration costs.

Work should always pay and that the party strongly believes that the welfare system is there as a safety net rather than a lifestyle choice.

We also believe proper support for small business and the SME’s will allow for sustained growth in the economy by reducing the threshold for VAT registration for small businesses or the self-employed to £150k.

The Liberal Party does not support across the board cuts in disability benefits as have been proposed and then withdrawn by the government.

As a party we do recognise that to shift the vast number of people on sickness benefits, those who are under employed and the hardcore of long-term unemployed back into the world of work, reform of the welfare system is imperative.

The party would recommend a comprehensive programme of counselling, mentoring and aspiration raising to assist people back into the world of work and to match their skills with work opportunities.

We also need to get rid of structural barriers like the 16-hour cap in courses for those who are registered as unemployed, which prevent people gaining life changing skills.

The next Liberal Party NEC will be held via Zoom on the 26th July between 1pm and 3pm.

The meeting is open to all, and an agenda will be available shortly.

 A  Zoom invite can be obtained from the secretary of the NEC, by e-mailing Stephen Graham via the contacts page on the party website.

The Liberal Party welcomes the announcement by the government of its intention to increase UK defence spending to 5% to GDP by 2025.

The party full acknowledges that we need to work with other European countries to increase logistics and reduce dependence on the USA regardless of any debate over the EU.

We also need to increase our front-line capacity to reduce the need to go to the nuclear option prematurely. This includes conventional weapons, drones, and surveillance and cyber warfare technology.

The government must also not forget that the welfare of service personnel and their family’s need to be addressed with better quality accommodation to encourage the retention of skilled professionals.

The Liberal Party notes with grave concern the continued monthly deficit being run by the UK government, which stretched to £17.7 billion in May 2025.

This amounts to the second largest May borrowing figures on record and follows a deficit of £20.2 billion April. Such deficits accelerate the approach of UK total government debt of 100% of GDP and total public debt of £3 trillion.

Whilst we acknowledge that much of the accumulated deficit is the result of high interest payments, this emphasis the total cost of ever-increasing burrowing and we believe that the government finances need to be put on a firm footing. 

As a first step we would propose freeing the SME and small business sector from excessive administration and red tape to speed up economic activity, including raising the VAT registration threshold to £150k and revoking the increase in employee NI payments which stifle employment.

The Liberal Party notes with serious concern the commencement of US airstrikes on Iranian nuclear facilities.

We condemn Iran’s objectives of destroying Israel and pushing ahead with a nuclear programme despite many diplomatic rounds of engagement, but we believe that direct US involvement can only have a destabilising effect.

We fear that attacks on Iranian targets may consolidate support for the regime rather than weaken it.

We also note media reports that the Iran has approved the closure of the Straits of Hormuz, pending confirmation of this action by the supreme national security council.

Any attempt at the closure of the straits,  a vital roue for gulf oil shipments, risks creating another flash point and. We call for restraint and a period of disengagement by Israel, Iran and the US to reduce further violence.

The Liberal Party notes with concern recent violence in the vicinity of the Iranian embassy in London on Friday the 20th of June.

We should protest that 6 peaceful Iranian’s protesting against the Iranian Islamic Republic were violently attacked in Princes Gate, of which 2 needed medical treatment. 

According to the Metropolitan Police 7 people were arrested in the vicinity of the alleged innocent, and an 8th on suspicion of breaching an order imposed to prevent serious disorder.

The party believes that the UK authorities need to take firm action to prevent supporters of the Iranian regimes continuing their targeted attacks on  genuine refugees and opponents in many UK cities.

The Liberal Party notes with grave concern the resumption of violence between Israel and Iran and the continued exchange of drone and ballistic missiles strikes.

The party calls upon the UN to condemn the ongoing violence on the part of both nations and to encourage de-escalation as a matter of urgency.

We are also concerned that the conflict will distract the world’s attention  from the ongoing humanitarian crises in Gaze, where the population is being subjected to an arbitrary policy of hunger and restricted food distribution to coerce the population into vacating much of the Gaza strip.

This policy has exposed Palestinians seeking aid to violence and death when trying to access aid distribution points outside UN supervision  with media reports of a further 51 civilian deaths on the 17th of June according to the Hamas-run health ministry in Gaza.

The Liberal Party notes the publication by the government of its Strategic Defence Review and its pledge to increase defence spending to 3% in the long term.

 We believe that the review understates the time need to improve capabilities. However, our greatest concern remains the failure to attract sufficient numbers of young people to careers in the Armed Forces. We are alarmed at the failure of successive governments to retain high quality personnel. Morale is not as it should be, and we fear that our readiness to fight a war is questionable.

We would radically overhaul access to justice for Service personnel by abolishing the existing service complaints system (and the associated Service Complaints Ombudsman for the Armed Forces). We would also establish a military employment tribunal under the supervision of the Judge Advocate General of the Armed Forces. Only then will we see an increase in standards and the morale required across our Armed Forces.

Further, we would introduce a new protected characteristic of military service to the Equality Act 2010, to remove discrimination against our serving personnel and veterans.

The Liberal Party notes with alarm the recent announcement by the Israeli government of a further expansion and consolidation of settlements in the West Bank.

Media reports suggest 22 sites, some new, some of which currently exist as outposts, but which did not have legal approval have been approved.

The statement by Defence Minister Israel Katz that the expansion of settlements "prevents the establishment of a Palestinian state that would endanger Israel" confirms a policy of rendering a future Palestinian state unviable.

The Liberal Party believes that the Palestinian nation has the right to a homeland, just as the state of Israel has the right to exist in peace and with mutual respect for its neighbours.

The current Israeli settlement policy infringes on not only Palestinian sovereignty but also the long-term prospects of a sustainable Two State Solution being finally realised within the region.