Yesterday’s announcement that the personal tax allowance will rise again next April, means that 81,200 working people in York will get a further tax cut and the number of low-earners who have been lifted out of paying Income Tax altogether since 2010 will reach 7,560.

This means that the Liberal Democrats in the Coalition Government have increased the amount of money people can earn tax-free every year. In April it will be raised again to £9,440, a total tax cut of £600 a year for more than 20 million people nationally. The changes mean that more than 2 million low-income workers will have been taken out of paying tax altogether since 2010. The Lib Dems are on track to increase the amount of money people can earn tax-free to £10,000 by 2015, which would be a total tax cut of £700 a year for most people.

Councillor Carol Runciman, Leader of the Liberal Democrats on City of York Council, said:

“I am delighted that the Liberal Democrats are continuing to cut taxes for working people. Yesterday’s announcement means that in April, over 81,000 ordinary working people in York will get a further Income Tax cut, bringing their total tax cut to £600 a year as a result of Liberal Democrat policies in the Coalition Government.

“The changes also mean that we have lifted 7,500 low-earners in York out of paying Income Tax altogether since the Coalition Government came to power in 2010. Raising the tax-free allowance was our number one priority at the last General Election – so important that we put it on the front page of our manifesto. I am delighted that we have fulfilled this promise.

“Times are undoubtedly tough, with rising bills and wages not keeping pace with inflation, but the Lib Dems are determined to give people real practical help. Not only did the last Labour Government destroy the public finances, they actually increased tax on low earners by scrapping the 10p tax rate. Under Labour, a person on the Minimum Wage paid £1,000 in Income Tax. Liberal Democrats have cut that tax bill in half and under our future plans, they would pay nothing.”