Working people in East Dunbartonshire will benefit from a £905 income tax cut by 2018 thanks to a flagship Liberal Democrat Budget policy, Jo said today.
The Budget included Lib Dem plans to raise the tax-free personal allowance yet again to £10,800 in 2016/17 and £11,000 a year later. In Scotland the personal allowance increase in 2017-18 will bring the number of those lifted out of income tax altogether to 287,000.
The party’s 2015 manifesto includes measures to go further with a commitment to raise the tax-free to £12,500 by the end of the next parliament.
Today’s Coalition Budget also brought welcome help for key sectors of the Scottish economy like oil and gas and Scotch Whisky.
Commenting Jo said:
“In 2010 I campaigned for fairer tax – on my newspapers, leaflets, and target letters on the doorsteps, in press releases and media interviews. It was the number one policy I hammered home again and again.
“It was our top priority and we have delivered - helping low and middle income families across Britain.
“This has been the most important and effective policy of this Government - reducing the tax bills of millions and millions of ordinary workers.
“Local Tories ight try and claim credit but their focus has always been on tax cuts for millionaires. David Cameron also claimed we couldn’t afford to raise the tax-free allowance.
“Only the Liberal Democrats can create opportunity for everyone by building a stronger economy and fairer society.”
Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:
“Increasing the amount workers can earn before they start paying income tax is one of the most important announcements in this Budget and is a Liberal Democrat flagship policy - straight from the front page of our manifesto, delivering money into the pockets of millions of workers.
“Delivering income tax cuts for those on low and middle incomes is, was and will be at the heart of the Lib Dem mission to build both a stronger economy and a fairer society - with opportunity for everyone.”
Raising the tax-free personal allowance to £10,000 - a tax cut of £700 - was on the front of the Liberal Democrat 2010 manifesto. Liberal Democrats will have raised this allowance to £10,600 by the end of the parliament.
Budget 15 announces further increases in the personal allowance. By 2017, the government will have increased the personal allowance by £4,525. This represents a rise of 70 % since 2010 when it was £6,475.
As a result of increases to the personal allowance, a typical basic rate taxpayer will be £ 905 a year better off in 2017-18 compared with 2010-11. Typical higher rate taxpayer will be £848 better off in 2017-18.
By 2017-18 27.2m individuals will have benefited from increases in the personal allowance and higher rate threshold since 2010.
Since 2010, as a result of changes to the personal allowance and reducing the tax on savings, the government will have lifted over 3.7 million out of income tax altogether by 2017-18.
The Liberal Democrats are the party of fair tax. We put a £700 tax cut for ordinary workers on the front page of our manifesto at the last election. And we have now delivered this in Government.
Putting money back into people's pockets is so important during these hard times. But we are also making sure those at the top pay their fair share too.
In Government we have:
- Given a £700 tax cut to 24 million people, increasing to £825 in 2015. Now, we want to turn that into a £1,200 tax cut.
- Clawed back £9 billion from tax dodgers.
- Campaigned to create a Mansion Tax on the value of properties worth over £2 million.
The Conservatives can't be trusted to deliver fair taxes by themselves. We blocked their plans to give millionaires a £270,000 inheritance tax cut and they refuse to create a mansion tax because they are worried it would affect their big donors.