Lib Dems' Campbell wins crunch tax vote

BRIGHTON, Sep 19 (Reuters) Liberal Democrat leader Menzies Campbell won a crunch vote on his tax reform plans at the party's conference today.

The result avoided an embarrassing defeat for Campbell in the first major test of his authority as party leader.

Campbell saw off an attempt to stop the party ditching its previous pledge of a 50 per cent top income tax rate.

A tax reform package approved by delegates also included new levies on gas-guzzling cars and on aviation to help pay for income tax cuts.

Campbell and his Treasury spokesman Vince Cable proposed tax cuts of 18 billion pounds by axing the 10 per cent income tax rate and reducing the standard rate by two percent.

Prior to the vote, Campbell appealed to his party to demonstrate they were a credible party of government.

He said he was determined to move the party from one of opposition towards being a party of government.

''In order to do that, we have got to ensure our credibility, particularly in issues like taxation, is beyond reproach,'' Campbell said on BBC radio.

Former leader Charles Kennedy, who stepped down earlier this year after saying he was battling an alcohol problem but who remains popular with rank and file members, will be addressing the conference later today.

REUTERS DKA KP1821