Budget 2012: For the many, not the few

This weeks budget has included a number of good Liberal Democrat policies.

Over 20 million working people will be better off next year after Liberal Democrats in the Coalition Government delivered the biggest ever increase in the income tax personal allowance.

The massive £3.5bn tax cut for working people delivers:

  • The biggest ever single uplift in the tax threshold.
  • A personal allowance of £9,205 in April 2013.
  • 21 million working people getting an extra £220 tax cut.
  • Brings the total tax cut for basic rate tax payers to £550.
  • Brings the total number of people lifted out of tax to 2 million.

The Liberal Democrats have ensured this is a budget for the millions not for the millionaires. That’s why the biggest move in this Budget is a tax cut for ordinary workers, going further and faster towards the Liberal Democrat goal of making the first ten thousand pounds you earn tax-free. From a pledge on the front page of our 2010 manifesto directly to the pockets of working people.

Thanks to the Liberal Democrats, people working full time earning the minimum wage will have seen their income tax bill cut in half.

We have delivered on Nick Clegg’s pledge to go “further and faster” on the personal tax allowance. This means that 21million basic rate taxpayers will get an extra £220 cut in their income tax bills and a further 840,000 people will be taken out of paying income tax altogether.

Last years announcement that Child Benefit would be withdrawn from higher-rate tax payers caused many people to question the rules – especially for one earner familes. The budget today introduced a higher limit before the benefit is withdrawn and a “taper” to make the scheme.

The Liberal Democrats were also commited to making sure that this was a budget that saw those earning most paying their fair share. New taxes on the very richest will raise FIVE times as much from the super-rich as next years cut on the top rate of tax from 50p to 45p will cost:

  • Stamp duty increased to 7% for multi-million pound homes
  • New 15% tax on companies buying property over £2m
  • Crack-down on tax avoidance for the richest

To stimulate the economy, there are new measures to help businesses across the country:

  • Reducing red-tape on business taxes for small business.
  • Cutting corporation tax to help British business.
  • Getting more money from the banks to loan more to British businesses.

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