18 MARCH, 2015 @ 1:26 PM
From April 2016, the personal tax allowance will increase from £10,600 to £10,800 and will increase again in April 2017 to £11,000 meaning that millions of workers will be able to keep more of their hard earned cash.
As a result of increases to the personal allowance, a typical basic rate taxpayer will be £905 a year better off in 2017/18 compared with 2010/11.
Income tax cuts for working people were a top priority for Liberal Democrats when we entered the coalition in 2010.
The Conservatives said it was not affordable but Liberal Democrats in government have fought tooth and nail to cut taxes for workers.
Cutting taxes for workers by raising the personal allowance to £10,000 was on the front page of the 2010 Liberal Democrat manifesto.
The Liberal Democrat commitment to reduce taxes for low and middle-income earners has been a centrepiece of this parliament and next month the personal tax allowance will increase to £10,600.
This means that by the end of this parliament, Liberal Democrats will have delivered a tax cut worth £825 for 27 million working people and lifted more than 3 million people out of paying tax altogether.
This change to the tax system will benefit millions of workers and would not be happening without Liberal Democrats in government.
Our 2015 manifesto includes measures to go further with a commitment raise the tax-free threshold to £12,500 by the end of the next parliament.
Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:
“Increasing the amount workers can earn before they start paying income tax is one of the most important announcements in this Budget and is a Liberal Democrat flagship policy – straight from the front page of our manifesto, delivering money into the pockets of millions of workers.
“Today’s announcement underlines the sheer scale of the tax cuts delivered by the Liberal Democrats in Government for working households across Britain.
“Today’s announcements will give 27 Million workers a tax cut worth £905 to a typical basic rate tax payer and lift nearly 4 million out of income tax altogether.
“Delivering income tax cuts for those on low and middle incomes is, was and will be at the heart of the Lib Dem mission to build both a stronger economy and a fairer society – with opportunity for everyone.”