An £800 income tax cut is the real budget boost, local MP Jo Swinson said following last week’s budget.
The number of people who could benefit from a cut to the personal allowance in East Dunbartonshire is expected to be 40,000.The budget revealed plans to increase the personal allowance from April 2015 and put an extra £100 back in taxpayers’ pockets. Liberal Democrats have already delivered on a £700 tax cut for low to middle earners, but will now go even further for hardworking people.
More than 3,000 families in East Dunbartonshire will be able to benefit from a major childcare package set to help parents by giving working families up to £2,000 per child to ease the cost of childcare. The Government has said it will provide 20 per cent support on childcare costs up to £10,000 per year for each child as part of a scheme to be rolled out in Autumn 2015. People on Universal Credit will get 85 per cent of childcare costs fully covered.
Pensioners will have control and access to their pension ‘pots’ now that they are no longer tied into buying annuities and savers will be helped by a simpler, increased ISA saving allowance of £15,000.
The Scottish Government will receive positive Barnett consequentials of over £63 million thanks to spending decisions in this Budget. Since the Spending Review in 2010, the UK Government will have increased Scottish Government budgets by £2.2 billion.
Commenting, Jo said:
“This tax cut is the real budget boost for hardworking people and would not have happened without Liberal Democrats in the Coalition Government creating a stronger economy and a fairer society. The personal allowance was £6495 in May 2010 and now no one will start paying income tax until they’re earning £10,500.
“This was on the front page of our manifesto, though the Tories are desperate to claim credit. In reality their focus is on changes such as an inheritance tax cut for millionaires, which we blocked, while Labour simply cannot be trusted with the economy.
“We’re also helping people with our new tax-free childcare plans so parents can get their children off to the best start in life, helping parents to go to work and provide security for their families.
“The budget also had good news for pensioners, removing the need to buy annuities, and savers will welcome an increased ISA savings allowance of £15,000.”