Osborne to raise income tax threshold
As the announcement of the Budget looms, George Osborne is expected to appeal to Britain’s ‘squeezed middle’ by tightening the Treasury’s grip over public spending
As the announcement of the Budget looms, George Osborne is expected to appeal to Britain’s ‘squeezed middle’ by tightening the Treasury’s grip over public spending
Despite a disappointing year for public finances, George Osborne is expected to announce an increase in personal income tax allowance to give 25million people cuts of up to £320 a year.
The tax-free allowance was already scheduled to rise from £6,475 to £7,475 next month and this latest move will lift 1.3 million people out of tax altogether - many of them women who work part-time.
SeniorLiberal Democratsources hailed the coalition government’s commitment to increasing the personal tax bracket as a crucial step towards their goal of increasing the personal allowance to £10,000 by the end of its time in office.
Figures released on Tuesday showed the Consumer Prices Index annual rate of inflation had risen from 4% in January to 4.4%, driven by food, clothing costs and fuel.
The Budget, due to be announced later today, will also incorporate a £250million initiative to help 10,000 first-time homebuyers. Chancellor is also expected to scrap a planned rise in fuel duty.
Mr. Osborne will outline a shake-up of planning laws, deregulation of employment laws affecting small businesses, and is expected to announce the long awaited plans for a green investment bankas the coalition seeks to shift the focus of the economy from deficit reduction to boosting growth.
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Additionally, the Chancellor plans to create 50,000 apprenticeships and 12 technical colleges, while a 12-month National Insurance holiday for new businesses in some parts of the country could be extended nationwide.