“Liberal Democrats are working for a stronger economy and a fairer society, so that everyone can get on in life. That’s why we are cutting taxes for working people.
“Today’s announcement means that by April, 87,700 ordinary working people in Walsall will get a further Income Tax cut, bringing the total tax cut to £600 a year since Liberal Democrats joined the Coalition Government.
“In Walsall, this welcome news also means that 8,990 low-earners have been lifted out of paying Income Tax all together since the Coalition Government came to power.
“Liberal Democrats want fairer taxes, which is why we made raising the tax-free allowance our number one priority at the General Election – so important that we put it on the front page of our manifesto.
“When times are tough, with rising bills and wages not keeping pace with inflation, we want to give people real, practical help.
“Cutting Income Tax will not deal with all of those problems, but it will help. And I hope it will make a big difference to every family in this country.”
- Liberal Democrats in the Coalition Government have increased the amount of money you can earn tax-free every year. In April it will be raised to £9,440, a total tax cut of £600 a year for more than 20m people.
- In 2013, someone working full time on the minimum wage will see their Income Tax bill cut in half compared to what they were paying under Labour.
- By April we will have taken more than 2m low-income workers out of paying tax altogether. The majority will be women.
- Liberal Democrats aim to increase the amount of money you can earn tax-free to £10,000 by 2015, which would be a total tax cut of £700 a year for most people.
- Beyond that, we want to increase the tax-free allowance further until it reaches the same level as the Minimum Wage.
- Labour’s record of unfair taxes: Labour cut tax for millionaires every single year until their last month, while increasing tax on low earners by scrapping the 10p tax rate. Under Labour, someone on the Minimum Wage paid £1,000 in Income Tax. We have cut their tax bill in half and under our future plans, they would pay nothing.Labour helped the richest in society when they cut Capital Gains Tax for hedge fund managers and cut tax on millionaires’ pension pots.
- Conservatives tax cuts for the richest: The only tax cuts the Conservatives support are ones for the very rich. At the General Election, their priority was to cut inheritance tax for millionaires. In the Coalition, Liberal Democrats have blocked these plans and instead we are cutting taxes for millions.