Local MP Jo Swinson is welcoming the news in today’s Budget that the Income Tax Personal Allowance will be raised to £10,000 in April 2014 – one year sooner than had been expected.
This means 48,100 ordinary working people in East Dunbartonshire will get a further Income Tax cut, bringing the total tax cut to £700 a year since Liberal Democrats joined the Coalition Government. This news also means that 3,380 low-earners in the local area will have been lifted out of paying Income Tax all together.
Also welcome is the announcement that this September’s planned fuel duty increase was cancelled, benefitting owners of 2.7m motor vehicles in Scotland. The Coalition Government has now cancelled twelve pence worth of fuel duty escalator increases and cut the actual level of duty by one pence per litre. For the average car driver this amounts to a difference of about £7 every time they fill up the tank.
Commenting Jo said:
“Liberal Democrats are working for a stronger economy and a fairer society, so that everyone can get on in life by 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.
“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 devolved Scottish Government will receive an overall additional spending power of £176 million over the next two years as a result of Barnett consequentials. There is a £55m increase in Barnett consequentials in 2013-14 and a £121m increase in 2014-15. This comes from a £279m increase in capital, with a reduction in the resource budget by £103m. This means that the Scottish Government has received an extra £1.7bn on top of what was originally announced in the 2010 Spending Review.
People in Scotland will benefit from decisions taken in the Budget including:
- A further increase in the personal allowance bringing it to £10,000 in 2014-15, benefitting 2.2 million taxpayers in Scotland. In total, 224,000 people in Scotland have been taken out of tax in Scotland by this government – 9.3% of working age people in employment
- The cancellation of the fuel duty increase, benefitting owners of 2.7m motor vehicles in Scotland, saving a typical motorist £25, van driver £50 and haulier £750 per year.
- Childcare support, available to 210,000 families in Scotland with 310,000 children under 12
- Help to Buy for those struggling with deposits for a new home. Introduction of Government equity guarantee on 95% mortgages to help across the UK. For an average home mover in Scotland, a 90 per cent mortgage would require a deposit of around £20,500. With a 95 per cent mortgage they would require a £10,500 deposit.
Scottish business will benefit from:
- A further 1% reduction in the main rate of corporation tax to 20% by 2015, which will see the UK have the joint lowest rate in the G20.
- A number of measures to improve access to finance for SMEs through the Business Bank and Enterprise Finance Guarantee
- A new employment allowance of £2,000 per year for all businesses and charities to offset against their employer national insurance bill from April 2014, benefitting 70,000 businesses in Scotland by £100m, with 35,000 of these business being taken out of NICs altogether.
- The abolition of Schedule 19 stamp duty reserve tax, making the UK and Scottish asset management sector more competitive. This will help generate substantial numbers of jobs in middle and back office functions, many of which are already based in Scotland.
- An increase in Above the Line credit for large company R&D expenditure. There are around 175 claims for this large company relief in Scotland each year.