Lib Dems target tax rise on booze

The extra revenue will be used to slash duty on "healthy" fruit juice and smoothies, according to the party's Treasury spokesman Vince Cable.

Dr Cable admitted that the proposals were "not dissimilar" to plans outlined by the Tories recently, while the Government is also expected to set changes in the Budget next week. But he denied that the Lib Dems had been stealing ideas from their rivals.

"If all the three parties should be saying something not greatly dissimilar then that may be a new form of grown up politics," Dr Cable said.

"It's very odd that you have some taxes that are regressive and very unpopular - like council tax - that have run way ahead of inflation, and drink duty - particularly on white spirit and wine, which we are talking about here - have lagged behind."

Dr Cable set out details of the plans in a speech to the party's spring conference in Liverpool. He received a standing ovation after demanding the Government take a far tougher approach to wealthy tax exiles.

Mr Cable mocked the "hysterical" reaction of the City to proposals to take more tax from non-domiciled residents - the so-called "non doms".

"If we are not careful, they say, Russian and Ukrainian oligarchs living in £80 million houses will no longer feel welcome and go somewhere else.

"That's tough. Let them go. We say that foreign expatriates are welcome to live and work in Britain. But when they have been here seven years, they pay British tax like the rest of us. Pay up or pack up."

He said that VAT on fruit juices and smoothies should be reduced from 17.5% to 5% to help encourage healthy diets.