I've just been watching the Budget and really welcome the Chancellor’s announcement of the raising of the personal allowance tax threshold today.
The Chancellor announced that the tax threshold will be raised to £9,205 from April 2013 meaning that millions of lower-income hard-working people will be taken out of tax altogether.
Comparing the personal tax for 2010/11 of £6,475 to the announcement made today for 2013/2014 of £9,205 will mean that tax payers will be £45.50 better off each month.
The increase of £1100 is worth £220 to 21 million working people –taking the total income tax cut for working people delivered over 3 years by the coalition to nearly £550 a year.
When times are tough, it’s only fair to ease the burden on low-earners by increasing the amount paid by the richest.
This was a key Liberal Democrat manifesto pledge which the Liberal Democrats fought hard for in the Coalition negotiations and a policy which will make a real difference to working families and young people around the country.
The announcement made by George Osborne to reduce the 50p tax rate to 45p will raise five times as much as the 50% rate did, according to the Office of Budget Responsibility.
Over 20 million working people will be better off next year after Liberal Democrats in the coalition government delivered the biggest ever increase in the income tax personal allowance in the Budget, with two million people will pay no income tax at all.