Wed, 05 Dec 2012
Liberal Democrats are working for a stronger economy and a fairer society, so that everyone can get on in life. That’s why we have pulled out the stops for normal working people, increasing the tax-free allowance further from April next year. That means Liberal Democrats will have cut your taxes by £600 a year.
We know that times are tough. To make life a little easier we are cutting Income Tax and putting more money back in the pockets of struggling families.
Cutting taxes for working people is our number one priority. It is so important to Liberal Democrats that we put it on the front page of our manifesto, argued for it in the coalition negotiations and are delivering it in government.
What we’ve done
Liberal Democrats in the Coalition Government have increased the amount of money you can earn tax-free every year. In April it will be raised to £9,440, a total tax cut of £600 a year for more than 20m people.
In 2013, someone working full time on the minimum wage will see their Income Tax bill cut in half compared to what they were paying under Labour.
By April we will have taken more than 2m low-income workers out of paying tax altogether. The MAJORITY will be women.
What we want to do
Our aim is to increase the amount of money you can earn tax-free to £10,000 by 2015, which would be a total tax cut of £700 a year for most people.
Beyond that, we want to increase the tax-free allowance further until it reaches the same level as the Minimum Wage.
Labour’s record of unfair taxes
Labour cut tax for millionaires every single year until their last month, while increasing tax on low earners by scrapping the 10p tax rate. Under Labour, someone on the Minimum Wage paid £1,000 in Income Tax. We have cut their tax bill in half and under our future plans, they would pay nothing.
Labour helped the richest in society when they cut Capital Gains Tax for hedge fund managers and cut tax on millionaires’ pension pots.