Today’s Budget announced that the Income Tax Personal Allowance will be raised to £10,000 in April 2014 – delivering in full the top Liberal Democrat priority one year sooner than had been expected.
This means 24.5m working people will get a further Income Tax cut, bringing the total tax cut to £700 a year since Liberal Democrats joined the Coalition Government.
It also means 2.7m low-paid workers will be lifted out of paying Income Tax altogether.
Cutting taxes by £700 for working people is the Liberal Democrats’ top priority. We put it on the front page of our 2010 manifesto, argued for it in the coalition negotiations and are delivering it in Government.
Commenting, Liberal Democrat Chief Secretary to the Treasury, Danny Alexander said:
“Liberal Democrats are building a stronger economy and a fairer society, enabling everyone to get on in life. That’s why we are cutting taxes for working people.
“When times are as tough as they are now, our focus must be on helping those on low and middle incomes. The right to earn £10,000 income tax free has gone from the front page of our manifesto to the pockets of 27m hardworking people. By keeping this promise we are giving practical help to millions of families.
“It’s also why we have scrapped another of Labour’s fuel duty rises, so filling up your car will be £7 cheaper than under Labour plans. And why we are cracking down on tax dodgers so that everyone is paying their fair share.”