Danny Alexander MP has argued in an interview in this week’s New Statesman magazine that he would like to “push further” eventually on raising the income tax threshold higher than the planned £10,000.
Here’s an excerpt from the interview, published in the Staggers:
From the Treasury perspective, the main Lib Dem contribution to government has been the plan to raise the income-tax threshold to £10,000 by the end of the parliament. Alexander is very attached to this policy as a way of compensating people on low incomes for the cuts. “I think it’s a direction that we will want to push further,” he says. How much further? “I don’t see why, in the next parliament, we shouldn’t be trying to get to a situation where people in a full-time job on the minimum wage are paying no income tax at all. That, to me, is a higher priority than reducing the overall tax burden on the wealthy.” I take this to mean that he rejects the aim, supported by many Conservatives and endorsed by a group of 20 economists in a public letter to the Financial Times, of abandoning the 50p top rate of income tax. “At a time when the whole country is facing serious financial challenges, the priority needs to be people on low and middle incomes.