Today’s Budget announced that the Income Tax Personal Allowance will be raised to £10,000 in April 2014 – one year sooner than had been expected. This means 500,000 ordinary working people in Essex will get a further Income Tax cut, bringing the total tax cut to £700 a year since Liberal Democrats joined the Coalition Government.
In Essex, this welcome news also means that 49,000 low -earners will have been lifted out of paying Income Tax thanks to Liberal Democrats in the Coalition Government.
Commenting, Stansted Liberal Democrat Geoffrey Sell said:
“Liberal Democrats are working for a stronger economy and a fairer society, so that everyone can get on in life so we are cutting taxes for ordinary working people.
“Liberal Democrats want fairer taxes, which is why we made raising the tax-free allowance our number one priority at the General Election – so important that we put it on the front page of our manifesto.
“When times are tough, with rising bills and wages not keeping pace with inflation, we want to give people real, practical help.
“Cutting Income Tax will not deal with all of those problems, but it will help. And I hope it will make a big difference to every family in this country.”
Commenting further, Liberal Democrat Chief Secretary to the Treasury, Danny Alexander said:
“When times are as tough as they are now, our focus must be on helping those on low and middle incomes. That’s why we’ve made delivering on this promise our number one priority in Government.
“It’s also why we have scrapped another of Labour’s fuel duty rises, so filling up your car will be £7 cheaper than under Labour plans. And why we are cracking down on tax dodgers so that everyone is paying their fair share.
“All of this has been done while sticking to our tough but necessary plan to deal with this country’s financial problems. Britain can’t afford unfunded giveaways – unlike the last Labour Government, we have made sure everything is paid for.”
Labour cut tax for millionaires every single year until their last month, while increasing tax on low earners by scrapping the 10p tax rate. Under Labour, someone on the Minimum Wage paid £1,000 in Income Tax. The Lib Dems have cut their tax bill by more than half and under our future plans, they would pay nothing. Labour helped the richest in society when they cut Capital Gains Tax for hedge fund managers and cut tax on millionaires’ pension pots.