Monday, 24 March 2014

Liberal Democrat Tax Cut

The Budget has confirmed victory for the Liberal Democrats in our campaign to deliver an £800 tax cut for people on low and middle incomes.

Cutting income tax by £700 – by raising the tax-free allowance to £10,000 – was the top priority on the front page of the Liberal Democrat manifesto. That comes into effect next month and the Budget today has confirmed that the Liberal Democrats have now been able to go even further. The tax-free threshold will rise to £10,500 next year, giving a tax cut of £800 for 25m working people since 2010.

Liberal Democrat policy is to continue to increase the threshold in the next Parliament to £12,500.

The Tories are keen to try and claim credit for our tax cut, but in reality they came into the election arguing for an inheritance tax cut for millionaires, which we blocked, and have argued in Government for a tax cut for some married couples and to reduce the top rate of tax.

It is clear you cannot trust the Conservatives to act fairly. Labour on the other hand not only wrecked the economy, leaving us to clear up the economic mess they left in 2010, but also abolished the 10p tax rate when they were in Government. Labour simply cannot be trusted to deliver a strong economy.

Writing in the Daily Mail on Wednesday, Danny Alexander said:
“Cutting taxes for working people has been the Liberal Democrat flagship policy right from the start of the coalition.

“We’ve forced it onto the agenda at every Autumn Statement and Budget and by April this year will have delivered a tax cut worth £700 to 25 million working people.

“I’m delighted that the Liberal Democrat campaign to go even further has been successful.

“But many Conservatives wanted us to do something different.
“You only have to listen to what some Tory back benchers have been saying in the run up to the Budget urging action on the 40p rate instead.

“Those siren voices in the Conservative Party also miss the point that raising the personal allowance helps nearly all taxpayers, including the majority in the 40p band. 
“While raising the personal allowance is fair and popular it seems that many Conservatives don’t like this because it’s a Liberal Democrat idea. 
“The Budget is ‘good news’ for the entire UK, and with strong support for Scotch Whisky and North Sea Oil it shows that the interests of the Scottish people are best served in the United Kingdom.

“There’s been the inevitable attacks on this Budget and our progress to date from Labour. That’s what oppositions have to do.

“But the reality for them is that the people who crashed the car are not usually in a strong position when commenting on other people’s driving.

“They made the mess, we are clearing it up and making Britain stronger and more competitive in the process. 
“We are now a significant way down the road to recovery, and this Budget paves the way towards the stronger economy and fairer society that our country deserves.”