Nick Clegg, the leader of the Liberal Democrats has proposed to cut income tax by £700 for those earning less than £10,000 and increasing the rate for ' big business and millionaires', the Financial Times reported. The party plans to redistribute £17bn mostly to low and middle income families and the latest proposals mark the final adjustments to the party's campaign for an 'overhaul of tax policy'. The Lib Dems' initial tax agenda would have seen the basic tax rate be cut by 4p, costing £19bn. Labour has criticised Clegg by saying he was 'out of his depth' with the proposals.