Cutting your taxes by £905

March 18, 2015 1:26 PM
Originally published by UK Liberal Democrats

Liberal Democrats in government are delivering a tax cut worth £905 for millions of workers, the Budget has confirmed.

From April 2016, the personal tax allowance will increase from £10,600 to £10,800 and will increase again in April 2017 to £11,000 meaning that millions of workers will be able to keep more of their hard earned cash.

As a result of increases to the personal allowance, a typical basic rate taxpayer will be £905 a year better off in 2017/18 compared with 2010/11.

Income tax cuts for working people were a top priority for Liberal Democrats when we entered the coalition in 2010.

The Conservatives said it was not affordable but Liberal Democrats in government have fought tooth and nail to cut taxes for workers.

Cutting taxes for workers by raising the personal allowance to £10,000 was on the front page of the 2010 Liberal Democrat manifesto.

The Liberal Democrat commitment to reduce taxes for low and middle-income earners has been a centrepiece of this parliament and next month the personal tax allowance will increase to £10,600.

This means that by the end of this parliament, Liberal Democrats will have delivered a tax cut worth £825 for 27 million working people and lifted more than 3 million people out of paying tax altogether.

This change to the tax system will benefit millions of workers and would not be happening without Liberal Democrats in government.

Our 2015 manifesto includes measures to go further with a commitment raise the tax-free threshold to £12,500 by the end of the next parliament.

Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:

"Raising the level at which workers pay any tax is the most important policy in this Budget and it is a Liberal Democrat policy - straight from the front page of our manifesto.

"Today's announcements underlines the sheer scale of the tax cuts delivered by the Liberal Democrats in Government for working households across Britain.

"The Tories said it couldn't be done but 27 million workers will now feel the benefit with a further four million of the poorest lifted out of tax altogether.

"Make no mistake, this is the most important measure announced today and is at the heart of the Lib Dem mission to build both a stronger economy and a fairer society - with opportunity for everyone."