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48,000 in Hinckley and Bosworth to get £220 tax cut

March 21, 2012 3:42 PM

Liberal Democrats in Hinckley and Bosworth have welcomed today's budget announcement that from next year, the Income Tax threshold will be raised further, ensuring that no one pays any Income Tax on the first £9,200 they earn.

In Hinckley and Bosworth that means that from next year 3,650 people in Hinckley and Bosworth will have been lifted out of paying Income Tax all together since 2010. It will also mean more than 48,000 people in Hinckley and Bosworth will receive a £220 Income Tax cut next April. This is on top of Income Tax cuts of £200 last year and a further £130 Income Tax cuts coming next month.

Commenting, Liberal Democrat parliamentary spokesman for Hinckley and Bosworth, Cllr Michael Mullaney 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 £9,200 will help average working people in Hinckley and Bosworth who have been struggling with bills and higher cost of living.

"The government policy of lightening the tax burden on ordinary working people is one we Liberal Democrats here in Hinckley and Bosworth share as seen by our recent decision to freeze Council Tax.

"Liberal Democrats here in Hinckley and Bosworth have been campaigning for a faster delivery of the coalitions policy of people paying no Income Tax on the first £10,000 they earn. Today's announcement is a huge step towards that and I welcome it."

"The Liberal Democrat's priority of ensuring fairnes in these tough times is clearly visible in this 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 21m 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.