South Devon MP Caroline Voaden has backed Liberal Democrat plans to cut income tax, which the party says could put up to £680 a year back into the pockets of taxpayers.

The proposal was announced by Lib Dem leader Ed Davey at the party’s autumn conference in Brighton, where he stated the tax changes would be introduced over five years.

It would increase the tax-free personal allowance from £12,570 to £15,000, taking an estimated 2.5 million people out of paying income tax altogether.

The party also wants to increase the threshold at which people begin paying the 40 per cent higher rate of income tax, from £50,270 to £56,000.

The Lib Dems estimate this would take around 760,000 people out of the higher-rate band and save those affected £1,480 a year.

Ms Voaden said families and businesses in South Devon had been “squeezed to breaking point” by the cost-of-living crisis, adding that the proposals would provide “immediate tax relief” while supporting local businesses.

She also linked the plans to the party’s proposals for a closer economic relationship with the European Union, saying the Lib Dems would fund the tax cuts through economic growth generated by joining the EU single market and establishing a new customs union.

The party says its proposed Growth and Defence Partnership with Europe could generate £27 billion a year in additional tax revenue, with £17 billion used to fund the tax cuts.

Ms Voaden said: “The Liberal Democrats are fighting for immediate tax relief for residents in South Devon – putting cash back into people’s pockets, backing local businesses and giving power back to the community.”

The proposal comes as the Labour Government plans to freeze the personal allowance at £12,570 and the higher-rate threshold at £50,270 for several years.

Reform UK has also pledged to increase the personal allowance to £15,000, while the Conservatives have proposed other tax cuts, including a £5,000 tax-free “First Job Bonus” for young people.