Baroness Kramer: Fair tax matters to recover effectively

The Liberal Democrat Treasury spokesperson has said regarding taxation that "fairness absolutely does matter if you are going to make sure you are part of cohesive society that recovers effectively".

Baroness Susan Kramer, a former Vice-President of Citibank in Chicago, said "there is a real argument that at the upper end income tax is not a terribly effective way to tax people who are in fact the wealthiest".

Her comments follow Nick Clegg's suggestion that the UK's wealthiest people could be asked to pay more tax for a limited period.

In an interview with the Guardian newspaper, the Liberal Democrat leader said the country was engaged in a longer "economic war".