£905 tax cut for people in Carshalton and Wallington

Working people in Carshalton and Wallington will benefit from a £905 income tax cut by 2018 thanks to a flagship Liberal Democrat Budget policy, Tom Brake MP 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 London these Liberal Democrat measures will lift at least 502,000 out of income tax altogether.

They also mean 3.65 million people in London will see average real terms gain of £527.

 Across Britain 27.2 million people will have benefited from the increases by 2017/18 with 3.7 million lifted out of income tax altogether.

 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.


Tom Brake said:

“This tax cut is the real budget boost for working people and takes even more of the poorest out of income tax altogether.

“The Liberal Democrats are the one party to put tax cuts on the front page of its manifesto and deliver them - helping low and middle income families across Britain.

“This is a Lib Dem policy and has been the most important and effective policy of this Government - reducing the tax bills of millions and millions of ordinary workers.

“Local Tories might 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.

“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 taxpayer 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.”


Notes to Editors


-          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 Lib Dems want to go further and on the front page of our 2015 manifesto there is a commitment to increase the tax-free personal allowance to £12,500 by 2020.

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