Friday, April 04, 2014

Another increase in the personal tax allowance

Back in 2010 at the general election, the Liberal Democrats gave a commitment that, if part of government after the election, we would deliver income tax cuts of £700 for working people.  

It was on the front page of the Liberal Democrat manifesto, it was on all those leaflets that came through your door and it was a top priority in the negotiations that lead to the formation of the coalition government.   This week, this commitment is delivered into people’s pockets.  

From this week the personal allowance, the amount you can earn before you pay income tax, will be £10 000, up from £6 475 in 2010.    That is the £700 tax cut delivered.

Right from the formation of the coalition in 2010, the Liberal Democrats have insisted that raising the personal tax allowance to £10 000 is our first tax priority. Lifting the personal tax allowance helps the people of Dundee and it rewards work.

Here in Scotland, it means £700 tax cuts for more than 2 million people with 263 000 lifted out of income tax altogether.  Across the UK as a whole this tax cut will benefit over 25 million taxpayers.   Between the two Dundee Westminster constituencies, some 71 990 taxpayers benefit.

The party will continue to fight for further tax cuts for the working people of Dundee.  The Budget saw more progress, raising the allowance to £10 500 in April next year.  It’s the Liberal Democrat aim to raise it even further in the next Parliament to £12 500.  

That would mean a two term Liberal Democrat government would deliver a total tax cut of £1 200.  Tax cuts for working people are a vital part of building the stronger economy and fairer society that Dundee deserves.