Amid all the talk of pasties, grannies and cutting rich people’s tax reliefs, the central message of the Budget was a major tax cut for most working people and low income workers particularly. In North East Hertfordshire, people will be up to £220 better off next year thanks to the largest ever increase in the personal allowance announced by George Osborne in the Budget. The income tax personal allowance will be increased from April 2013 by an additional £1,100 to £9,205. This increase will give 35,925 local taxpayers a much needed boost every month. This means nationally that income tax has been cut by up to £546 for basic rate taxpayers since the Government came to power and 2 million of the lowest earners will have been taken out of tax altogether. But it really benefits our area too. 1225 more people in my constituency will be taken out of paying income tax. This means that 2988 will have been lifted out of income tax altogether by this Government.
The Budget was also about boosting growth, with cuts in Corporation Tax and regulations for business and a major increase in training and apprenticeships. The investment tax relief for businesses will also help locally.
Of course, many people love their pasties, but grannies have not lost cash in the Budget, simply their personal allowance differential with lower paid workers and it is right to try to reduce rich people’s tax reliefs, whilst balancing this against the interests of charities. But if all rich people only paid to causes they liked, the medium and lower income taxpayers would be left holding the bill for vital basic services. We should all have to pay our taxes.