Working people in East Dunbartonshire will benefit from a £905 income tax cut by 2018 thanks to a flagship Liberal Democrat Budget policy, Jo said today.
The Budget included Lib Dem plans to raise the tax-free personal allowance yet again to £10,800 in 2016/17 and £11,000 a year later. In Scotland the personal allowance increase in 2017-18 will bring the number of those lifted out of income tax altogether to 287,000.
The party’s 2015 manifesto includes measures to go further with a commitment to raise the tax-free to £12,500 by the end of the next parliament.
Today’s Coalition Budget also brought welcome help for key sectors of the Scottish economy like oil and gas and Scotch Whisky.
Commenting Jo said:
“In 2010 I campaigned for fairer tax – on my newspapers, leaflets, and target letters on the doorsteps, in press releases and media interviews. It was the number one policy I hammered home again and again.
“It was our top priority and we have delivered - helping low and middle income families across Britain.
“This has been the most important and effective policy of this Government - reducing the tax bills of millions and millions of ordinary workers.
“Local Tories ight try and claim credit but their focus has always been on tax cuts for millionaires. David Cameron also claimed we couldn’t afford to raise the tax-free allowance.
“Only the Liberal Democrats can create opportunity for everyone by building a stronger economy and fairer society.”
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.
“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.”
Raising the tax-free personal allowance to £10,000 - a tax cut of £700 - was on the front of the Liberal Democrat 2010 manifesto. Liberal Democrats will have raised this allowance to £10,600 by the end of the parliament.
Budget 15 announces further increases in the personal allowance. By 2017, the government will have increased the personal allowance by £4,525. This represents a rise of 70 % since 2010 when it was £6,475.
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. Typical higher rate taxpayer will be £848 better off in 2017-18.
By 2017-18 27.2m individuals will have benefited from increases in the personal allowance and higher rate threshold since 2010.
Since 2010, as a result of changes to the personal allowance and reducing the tax on savings, the government will have lifted over 3.7 million out of income tax altogether by 2017-18.
The tax on a typical pint of beer will be cut by one penny for the third year in a row. The duty rates on lower strength cider and Scottish whisky will be cut by 2%. Wine duties are frozen in cash terms.
The tax on a bottle of Scotch whisky will be cut by 19p; 70p lower than under the inherited duty plans.
Oil and Gas industry
The Government has taken radical action as part of our plan to reform the fiscal regime to make it an attractive destination for investment and safeguard the long-term future of this vital national asset. That is why we will introduce the following reforms:
- Introduce a new Investment Allowance to drive new investment, simplify the existing system of offshore field allowance and provide greater certainty for investors. The allowance will be available on investment expenditure incurred after 1 April 2015. The Investment Allowance will reduce the tax rate on a portion of a company’s profits from 50% to 30%. Companies will pay the reduced rate on profits equal to 62.5% of their investment spend For every £1bn spent, companies will get at least £125m in tax relief.
- Reduce the Supplementary Charge from 30% to 20%, building on the 2% cut announced at Autumn Statement, to send a strong signal that the UK is open for business and ensure the UK Continental Shelf remains competitive as the basin matures. The change will take effect from 1 January 2015.
- Reduce Petroleum Revenue Tax from 50% to 35%, to encourage investment in older fields and the key infrastructure they support. This change will have effect for chargeable periods ending after 31 December 2015.