£700 tax cut for working people – Alexander
Originally published by East Midlands Liberal Democrats
Today's Budget announced that the Income Tax Personal Allowance will be raised to £10,000 in April 2014 - delivering in full the top Liberal Democrat priority one year sooner than had been expected.
This means 24.5m working people will get a further Income Tax cut, bringing the total tax cut to £700 a year since Liberal Democrats joined the Coalition Government.
It also means 2.7m low-paid workers will be lifted out of paying Income Tax altogether.
Cutting taxes by £700 for working people is the Liberal Democrats' top priority. We put it on the front page of our 2010 manifesto, argued for it in the coalition negotiations and are delivering it in Government.
Commenting, Liberal Democrat Chief Secretary to the Treasury, Danny Alexander said:
"Liberal Democrats are building a stronger economy and a fairer society, enabling everyone to get on in life. That's why we are cutting taxes for working people.
"When times are as tough as they are now, our focus must be on helping those on low and middle incomes. The right to earn £10,000 income tax free has gone from the front page of our manifesto to the pockets of 27m hardworking people. By keeping this promise we are giving practical help to millions of families.
"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."
The Facts
- Liberal Democrats in the Coalition Government have increased the amount of money you can earn tax-free every year. In April 2014 it will be raised to £10,000, a total tax cut of £700 a year for nearly 25m people.
- In 2014, someone working full-time on the minimum wage will see their Income Tax bill cut by more than half compared to what they were paying under Labour.
- By April 2014 we will have taken 2.7m low-income workers out of paying tax altogether. The majority will be women.
- The £700 tax cut means, for the average family, we have cut the Income Tax bill by a third. It is enough for a working couple to pay their council tax or combined gas and electricity bills for a year.
- Beyond this unprecedented rise in the Personal Allowance, we want to increase the tax-free allowance further until no one pays any Income Tax until they earn more than the National Minimum Wage.
- Labour's record of unfair taxes: 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. We have cut their tax bill by more than half and under our future plans, they would pay nothing.
- For all but one month of Labour's 13 years in power the top rate of tax was 40p. Top earners are paying more in tax every year under the Coalition Government.
- Labour helped the richest in society when they cut Capital Gains Tax for hedge fund managers and cut tax on millionaires' pension pots.
Comment from John Bishop - Lincoln sleaford and North Hykeham
As usual the budget was presented by a magician as a magic trick, now you see it now you don't. The value of £10K in real terms earning it in 2014 will only be worth £8500 at best (inflation 2.5%, wage increase 1%) net loss of worth approx £750.
Good headline not worth the paper it is written on.