Switching the focus of their taxation plans from education to health, the Liberal Democrats will today call for the introduction of a 50 per cent tax rate on earnings above £100,000 and changes to capital gains tax to pay for more investment.

The Lib Dems say the extra revenue should be spent on free personal care for the elderly, more training places for doctors and nurses, and the restoration of grants for university students.

The party will also propose consolidating the government's pensioner tax credits into a rise in the basic state pension of £5 a week, with £10 for the over-75s and £15 a week for those over 80.

In an article in today's Guardian, the Lib Dems' Treasury spokesman, Matthew Taylor, says the party still believes "you can't have something for nothing".

But he concedes that Labour's spending increases will probably mean the Lib Dems can drop their penny for education pledge.