Monday, 31 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.