Thursday, 12 February 2015

Fair taxes for everyone

Liberal Democrats are the party of fair tax, that's why one of our key priorities for the next five years is to cut taxes by an extra £400.

Under our plans we will raise the tax free allowance to £12,500 in the next parliament.

This will put £400 back in the pockets of 30m workers as well as taking a further 1m people out of tax altogether.

Unlike the Conservatives who are want to pay for this tax cut by slashing benefits for 5m of the working poor, we will fully fund this tax cut, by tackling tax avoidance and ensuring the wealthiest pay their fair share.

We want to help people who are struggling with the cost of living and provide an incentive to work. Even though tough decisions will still need to be made in the next Government to finish the job on the deficit, it is right that we reward work and help those on low and middle incomes.

That is why despite the financial crisis it was a Liberal Democrat commitment in 2010 to raise the Personal Allowance to £10,000, which we have delivered.

That is why Liberal Democrats will deliver a further increase in the Personal Allowance to £10,500 next April and that is why only Liberal Democrats can guarantee and further increase to £11,000 in our first year in office.

Increasing the Personal Allowance to £12.5k by the end of the Parliament will deliver a tax cut to over 30m taxpayers including just over 6million pensioners. Everyone earning below £100,000 and below 75 will receive the same cash benefit of £400.

This policy will also take a further 950,000 people out of tax over the next Parliament, including 400,000 pensioners.

Once we achieve our aim of lifting the income tax personal allowance to at least £12,500, we will then look to reduce Employee National Insurance Contributions (NICs).