Wednesday, 23 March 2011

Over 50k low paid workers in London to be lifted out of tax

In the 2010 election the Lib Dems campaigned for an increase in the personal allowance to £10,000, to lift the lowest paid out of income tax, to help thousands more on low incomes through a tax cut and (whisper it) to make work pay.

It was such a simple idea, the alternative pursued under Labour was to tax the low paid and then give it back through benefits, doing nothing to help the move from welfare to work.
There were four key pledges on the front of the Lib Dem manifesto. Each being delivered.

I have to admit while out campaigning, I began to share the scepticism of some of the residents in Camden. Why would anyone give a tax cut? After 13 years of Labour, the 10p tax rate debacle and other things it just seemed implausible. The assumed consensus was, the Liberal Democrats were simply being opportunistic and it didn’t matter anyway, they wouldn’t form the next government.

In the tax year beginning on April 6th 2011 the personal allowance will be increased to £7,475. It is widely expected that the Chancellor will also set out in Budget 2011 a further increase for tax year 2012/2013. The coalition agreement sets out an increase to £10,000 by 2015.

The changes from April 6th 2011, equate to over 50,000 people across London being lifted out of paying income tax and a further 2.5 million seeing a reduction of £200 in their income tax bill.

In Camden that figure is 960 not paying tax and a reduction for over 56,000. In neighbouring Barnet and Brent the number being removed from income tax is over 2,000 and ~2,700 respectively and over 90,000 in each Borough will see a reduction.

Labour didn’t want this. The Tories wouldn’t have delivered this.

This is a Lib Dem achievement and let’s be honest, a promise kept.

To see how the changes will affect you use this handy calculator.


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