The Liberal Democrats, during their spring conference in York, have announced initiatives to introduce new taxes and address various societal and economic issues. Party leader Sir Ed Davey has made several key proposals aimed at large corporations, the water industry, and the social care sector in England and Wales.

One significant proposal is the introduction of a 4% tax on share buybacks by large companies, inspired by a model from the U.S. President Joe Biden’s administration. This tax is expected to generate around £2 billion annually, which the party plans to use for funding public services and supporting green industries. The Liberal Democrats argue that this measure would ensure corporations contribute more fairly, especially important during times of rising living costs. Treasury spokesperson Sarah Olney criticized companies for prioritizing share buybacks over productive investments, which she claims hinders economic growth and efforts to combat climate change.

In addition to corporate taxation, the party has criticized the profit surge among water companies in England and Wales. Based on their analysis of Companies House data, pre-tax profits for these firms have almost doubled since 2019, jumping 82% to £1.7 billion for the fiscal year 2022-23. In response, the Liberals propose a 16% levy on these profits, termed as a “sewage tax,” to fund environmental initiatives, including river clean-ups and supporting regional environmental journalism. This proposal comes at a time when water companies plan to raise bills by up to 40% by the decade’s end, a situation the party labels a “national scandal.”

Moreover, Davey has called for cross-party talks to address the challenges facing the social care sector. He has emphasized the need for a consensus on financial support for the NHS and social care, suggesting reforms like a special minimum wage for care workers and increased support for family carers. Davey’s call reflects concerns over unmet promises from previous leaders and the urgency to find a sustainable solution for social care.

The conference also highlighted the party’s political strategy, focusing on expanding their influence in traditional Conservative strongholds and addressing broader issues such as the broadcasting of key sporting events on free-to-air TV channels. Despite facing competition from other parties, including the far-right Reform UK, the Liberals are aiming for significant gains in the upcoming 2024 elections, with Prime Minister Rishi Sunak having ruled out an earlier election on May 2.

Additionally, the party advocates for extending sanctions on violent Israeli settlers to those enabling their activities, illustrating their stance on international human rights issues. Overall, the Liberal Democrats’ proposals encompass a range of fiscal, environmental, and social policies, reflecting their agenda for the upcoming electoral cycle and beyond.