East Derry 2010: How much of our money would you take and how would you spend it?

The Sentinel asked each candidate in East Londonderry if Budget 2010 - set by Labour Chancellor of the Exchequer Alistair Darling - was fair and how they would change it were they in charge. According to the Treasury the UK budget deficit currently stands at around 163billion.

The Treasury reckons it has to pay for 704billion worth of Debt Interest, Public Order and Safety, Housing and Environment, Industry, Agriculture and Employment, Defence, Education, Transport, Health and Social Protection and Personal Social Services.

But money raised through Government tax receipts from Council Tax, Business Rates, VAT, Corporation Tax, Income Tax, Excise Duties, National Insurance, Capital Taxes, Stamp Duties, Vehicle Excise Duties, and other sources for 2010-11 is projected at just 541billion.

Equally the EU Commission and the Deputy Governor of the Bank of England have suggested there may be 25 billion additional budget cuts in the UK after the General Election.

Because some of the taxes mention above do not apply in Northern Ireland or differ in the rates that are applied across various income grades the Sentinel asked the election hopefuls to focus on the fixed tax rates - as current - that bring in the vast majority of revenue.

For the record the tax rates in question for 2010-11 are Capital Gains (18 per cent); Corporation Tax (main 28 per cent) (small firms 21 per cent); Income Tax rates (basic 20 per cent) (higher (37,401-150,000] 40 per cent) (additional (over 150,000] 50 per cent); Inheritance Tax (ceiling of 325,000); National Insurance (basic employee rate (over 110] 11 per cent); VAT (17.5 per cent).

So, do you want to tax the wealthy by lowering the inheritance tax ceiling and raising the highest income tax rate? Or do you want to hit the poorest people in society with a hike in VAT or hammer workers and businesses with NIC increases?

Perhaps you want to reduce tax rates and cut down on government expenditure, close a few unnecessary police stations, schools and hospitals, withdraw from Afghanistan and cut farmers subsidies? Over to you folks. How would you manage the budget?

DUP: Gregory Campbell

"The DUP believes we need low interest rates and must reign back public spending and invest more wisely. Spending reductions must be pursued rather than seeking to increase taxes. We oppose national insurance rises.

"Corporation tax should be reduced as far as is achievable in the current circumstances. Northern Ireland suffers from having a land border with another EU state and a step change is needed in the province's economy.

"We put forward the proposal some time ago to raise the threshold at which both income tax and National Insurance Contributions begin to be paid to 10,000 per annum.

"This would greatly assist the lower paid but in addition would also help combat the 'black economy' ensuring that small business owners had a reduced level of paperwork for part time staff or those earning less than 10,000.

"The rationale for a temporary 50 per cent tax rate for higher earners is there in these challenging economic times, but thereafter the DUP advocates progressing towards a flatter tax system which would release tens of billions of pounds from administrative savings and abolishing minor reliefs.

"We believe the threshold for inheritance tax should be raised to at least 1 million and reviewed in five years.

* sue for lower interest rates

* reduce spending

* reduce corporation tax

* no national insurance rises

* raise income tax and NIC threshold to 10,000

* 50 per cent higher income tax rate should be temporary

* raise inheritance threshold to 1m

TUV: William Ross

"GCT should be simplified and given a strategic ten year 'cooling off period' with no further changes to provide certainty to all. There should be no increase on GCT since this hurts pensioners, with some savings, who often rely on capital gains to supplement (reduced) savings income.

"Corporation tax rates are entirely inappropriate and have risen in recent years. To stimulate small business, the major engine of UK employment, this should be reduced to at least 19%.

"Income tax bands should all have moved up in line with inflation. By keeping the bands fixed, Government is effectively increasing tax whilst pretending it is not.

"Long term experience has shown that when tax rises to such a punitive level there is very little long term benefit for if such people are really worth such wages they demand and yet a big rise in salary.

"The TUV believes that the current taxation structure shold be replaced with a flat tax in common with other innovative and growing economies.

"This would have the obvious benefits of simplifying the UK tax system, generating more revenue for social purposes, encouraging enterprise whilst reducing the bureaucracy that disfigures the UK tax system.

"Ten million people could be lifted out from paying any tax and a real incentive put in place with the introduction of this progressive system.

"Tax on accumulated capital - including inheritance tax is a vicious attack on family wealth. Also, since this tax can be avoided by the very wealthy, who make tax lawyers rich by creating legal tax avoidance schemes, very large estates escape much of the tax.

"The only people who pay it are those who are not rich enough to employ the best accountants and lawyers and those who die suddenly before their wealth is legally protected.

"The tax liability is therefore often a matter of chance. I would scrap it as soon as possible for if the wealthy had no worries about the tax they would be more likely to invest it in the UK and create jobs here.

"National Insurance should not be increased as this is a blatant tax on jobs. TUV agrees with all the leading UK business leaders who point out that the planned NIC increase will harm our economic recovery.

"VAT is a European tax that originated in Europe. Its single virtue is that it is consumption based. Any increase at the present time would be unfair to our struggling retail and service sectors. Unfortunately it is a tempting target for the Chancellor and will probably be raised without any corresponding tax reduction elsewhere.

"Government learning to live within more finite tax resources is the key point to take on board. There is SO much waste, costing many billions, from the thousand plus UK quangos, to the vast PR machine now propping up government, that reducing tax can be seen as a positive advantage.

"So long as Government believes it can access more and more tax, it will not act in a responsible manner, as Labour has clearly demonstrated.

"TUV will work to ensure that Government shrinks and that the right of the individual to retain more of their income to invest/spend as they wish is maximised.

"At present the total raised is far too high a proportion of National income and has risen a lot over the lifetime of the present Government. The present level of tax has led to a number of firms leaving the UK to set up their HQ abroad. The UK has to compete on tax levels with other advance countries or more will leave."

Fuel Tax

"Northern Ireland is largely a rural community and for most people a car is not a luxury, it's a vital necessity. A trip to the filling station is now a really costly worry for most people.

"Furthermore, the rising cost of fuel raises the price of transporting goods around the Country and therefore the shop prices rise putting further pressure on the family budget.

"The Government really has to stop piling up the tax on fuel before its costs destroy transport and immobilise the rural population."

* ten year freeze on capital gains

* reduce corporation tax

* flat income tax rate

* scrap inheritance tax

* no NIC rise

* no VAT rise

* freeze fuel tax

* scrap Quangos

* scrap Government spin machine

* shrink Government

Sinn Fin: Cathal 'hOisn

"Sinn Fin's approach to the management of the economy is underpinned by our commitment to ensure the economy is working for people.

"To manage an economy successfully, the state must be able to raise, in a fair and equitable manner, the revenue required to provide quality public services; strong social protections; and the investment in infrastructure and economic development necessary to achieve full employment. In Ireland, all of this can best be achieved on an all-island basis.

"Capital Gains Tax - We are seeking its harmonisation on an all-Ireland basis and would examine the introduction of a banded system.

"Corporation Tax - We strongly advocate that this tax should be harmonised on an all-Ireland basis, and in this context calculated on the basis of prevailing island-wide economic conditions taking into account both business need for and benefit from public infrastructure and services and the need to ensure that the rate does not act as a disincentive to investment and employment.

"We support banded corporation tax and propose its extension across the island, to ensure progressive taxation based on business size, profit margin, and social contribution.

"Income Tax - We believe that those earning the minimum wage or less must be kept out of the tax net and those earning up to the average industrial wage should be kept within the standard rate tax band.

"We support a third tax band on high earners, those earning three times the average industrial wage. We would also be open to introducing additional higher tax bands on the very highest incomes.

"NIC - We would remove the NIC Upper Earnings Limit.

"Capital Acquisitions Tax (Inheritance Tax) - We would harmonise CAT on an all-Ireland basis, and would examine the introduction of banded CAT rates that increase with the increased value of the gift, We would charge a new higher rate on inheritances and gifts that are over twice the standard rate.

"VAT - We would look to decrease VAT (a regressive, unfair form of tax) to the lowest possible rate sustainable without negative impact on public revenue.

"However this would have to happen in tandem with other taxation reform and any necessary reform of VAT rules at EU level. Ultimately we would manage a transition away from dependence on consumption-related taxation, which (as we have seen with the recession) is volatile rather than sustainable.

"We also support the introduction of a 'solidarity tax' on the very wealthiest, as exists in other European jurisdictions, which is an income-linked tax on all net assets over €1m excluding farmland. The specific rate should be reviewed with each budget.

"As for increased taxation v. expenditure cuts: we believe that where tax increases become necessary they should always target in the first instance those highest earners who are most able to pay, and decisions should shelter those low income individuals who are economically the most vulnerable.

"As for spending cuts, we support the elimination of unnecessary duplicative waste arising from the maintenance of two separate public services on a small island with a small population.

"All-Ireland harmonisation and integration of public services would help realise real savings and this should happen well before any cuts are made in public spending that affect workers' incomes and frontline service provision.

"In addition, we do not support budgetary contraction policies, which deflate the economy, but support instead financial stimulus packages that will create jobs and thereby increase taxation revenue."

* tax harmonisation on an all-island basis

* eliminate waste through all-island integration

* all-island corporation tax rate

* no income tax for minimum wage

* standard income tax for average wage

* additional rate for highest earners

* remove NIC upper earnings limit

* higher rate on inheritance and gives

* decrease VAT

* solidarity tax on super rich

* argue for the devolution of tax raising powers

* local MPs have no influence

SDLP: Thomas Conway

"As many important decisions, on issues like tax, pensions and control over the banks are taken in Westminster, not Stormont, it is essential that the working families of Northern Ireland have their needs represented in Westminster.

"The SDLP want to build jobs. We will push for the introduction of an all-island rate of corporation tax, set at 12.5% in order to assist businesses in job creation.

"The SDLP have a strong record in holding the current Labour Government to account on issues affecting your finances.

"We led the campaign which made the Government U-turn on its plans to remove the Childcare voucher tax exemption scheme.

"And the SDLP forced Gordon Brown into a rethink on the removal of the 10pence rate of income tax. Removing this rate has had a negative impact on thousands of low-income families and we will continue to press for its reinstatement.

"The SDLP will oppose any increase in the rate of National Insurance contributions. National Insurance is deducted from every pay-packet, and levied on every employer for every employee. Essentially it is a tax on jobs. If we could lower it, we would directly boost job creation.

"We will also press for higher relief barriers on inheritance tax. In the past we have pressed the government to freeze the duty on petrol and diesel prices and we will call for the reduction of VAT on the refurbishment and extension of existing homes to 5% to create construction jobs and improve living standards.

"To fund spending we will push for a new approach to banking where a 'Robin Hood' levy of 50p on every 1,000 of speculative transactions between banks has the ability to raise hundreds of billions of pounds every year and transform public finances.

"We also believe that billions of pounds are being wasted on prestige follies such as nuclear weapons, the Eurofighter, costly NHS databases and ID cards. We would cut the funding from here and use to protect vital frontline services.

"The SDLP will take our seats in Westminster to ensure the best deal for you and your finances."

* all-island 12.5% corporation tax

* no national insurance increases

* increase inheritance tax limit

* reduce VAT on refurbishments to 5%

* Robin Hood levy on speculative transactions

* scrap nuclear weapons

* scrap ID cards

* scrap eurofighter

* scrap costly NHS databases

Conservatives and Unionists: Lesley Macaulay

"Like every Labour Government Gordon Brown's ran out of money. The Chancellor's last budget was a further attack on hard pressed families and businesses as they are still dealing with the worst recession in living memory.

"Instead of tackling the debt crisis by reducing government waste Labour plans to increase taxes on hard working families and businesses. Conservatives and Unionists candidates will be the only candidates in this election who have a chance to stop the Labour Party's failed plans. We are the only candidates who will be able to form part of the next Government of the United Kingdom. As part of the next Conservative Government we will have a positive impact on the lives of the people of East Londonderry and Northern Ireland.

"Whilst Conservatives and Unionists recognise there are difficult decisions to be made we are committed to getting the UK economy back to work and removing Labour's unfair taxes.

"We will stop the Labour Party's planned increase in national insurance for everyone earning over 20,000. Labour's plans amount to nothing more than a tax on jobs and under Conservatives and Unionists businesses will be able to keep more people employed whilst seven out of ten people will be up to 150 better off a year.

"We are committed to reducing corporation tax from 28% to 25% and from 21% to 20% for Small and Medium sized businesses across the UK. This will give an immediate boost to local businesses here.

"Conservatives and Unionists have no plans to increase VAT and we will raise the inheritance tax threshold to 1 million to help millions of people who aspire to pass something on to their children, paid for by a simple flat-rate levy on all non-domiciled individuals.

"The size of the national debt means that the United Kingdom needs to change. However, whilst there will be many difficult decision if we are elected we do not believe in punishing hard working families and businesses for the mistakes of the Labour Government. Other parties in Northern Ireland will make many claims in this election campaign but Conservatives and Unionists are the only candidates who can deliver."

* remove Labour's unfair taxes

* stop planned National Insurance increase for 20,000+ earners

* reduce corporation tax from 28% to 25% (main)/ 21% to 20% (SME)

* no VAT increases

* raise inheritance tax ceiling to 1m