As part of the Budget, the Chancellor has announced that from next year, the Income Tax threshold will be raised further, ensuring that no one pays any income tax on the first £9,205 they earn.
In York, that means 6,830 people will be lifted out of paying Income Tax all together and 76,900 will receive a £220 tax cut. This is on top of tax cuts of £200 last year and a further £130 next month.
Commenting, Dringhouses Ward Liberal Democrat Councillor Ann Reid said “The Chancellor has done the right thing in listening to Liberal Democrat calls for the Income Tax threshold to be raised further.
“As a Liberal Democrat, I want to see a fairer tax system where help is provided for those who need it most and where the richest pay their fair share.
“Raising the Income Tax threshold to £9205 will help working people on average incomes in York who have been struggling with bills and higher cost of living.”
Commenting further, Liberal Democrat Chief Secretary to the Treasury, Danny Alexander said “Liberal Democrats have been clear in our priorities for the Budget. We wanted to see a Budget for the millions, not the millionaires.
“The Coalition Government inherited an unfair tax system from Labour, who in their 13 years hit ordinary working families hardest by abolishing the 10p tax rate while letting tycoons get away with shameless tax avoidance.
“Liberal Democrats in the Coalition Government are doing the right thing to clear up the mess Labour left behind, making sure the wealthiest pay their fair share by clamping down on tax avoidance, introducing a ‘tycoon tax’ and putting an end to stamp duty dodging by the super rich.
“Raising the Income Tax threshold is a key Liberal Democrat commitment that the Coalition Government is implementing. The announcement in the Budget will mean almost 2m people will be taken out of paying Income Tax all together in the UK and give nearly 25m people a £220 tax cut.”
1. The Budget includes a number of measures to make the rich pay their fair share. These include a Tycoon Tax to cap tax breaks the wealthy can use; raising the rate of stamp duty to 7% for being who buy £2m mansions; and closing loopholes that allow people to buy houses in company names to avoid Stamp Duty when the property is sold.
2. When the Coalition came to power in 2010 the Personal Tax Allowance was £6,475. Increasing it to £10,000 will mean £700 back in the pockets of working people, or approximately £60 a month.