Over at the Telegraph, Danny Alexander follows up his piece in last week’s Sun on Sunday defending the Coalition’s benefits and tax changes — Bedroom blockers and tax dodgers will pay — but this time in less tabloid terms:
… cleaning up the mess left by Labour involves difficult decisions everyday that impact on people’s lives up and down the country. Few more so than some of the changes to our tax and welfare system that have come in this week. The welfare changes this week are difficult, but right and necessary to ensure that people are always better off in work than on welfare. This debate has been going on sometime, irrespective of the tragic Philpott case, and we will continue to deliver on our welfare reforms.
Having given the welfare changes a broad-brush welcome as “right and necessary”, Danny then focuses on the Lib Dems’ delivery of tax-cuts for low- and middle-income people:
Today sees the start of a new tax year, and with that a change for most people in their tax arrangements. The most productive and the most efficient way of cutting the welfare bill is also one of the simplest. We want to move people away from welfare into work. And one of the best ways of encouraging that is to ensure that work pays, by ensuring that those who work get to keep more of their hard earned money. That is why I want working people on the lowest incomes to pay less or even no income tax. …
From today, April 6, you will pay no tax on the first £9,440 that you earn. And this time next year, you’ll pay no tax on the first £10,000 that you earn. That is a tax cut for 25 million low and middle income people up and down the country and importantly takes a total almost 3 million out of paying income tax altogether. It helps to ensure that it pays more to work than it does to stay at home. For someone working hard on the minimum wage it means Lib Dems have cut their income tax bill in half. It is a policy that from this month keeps £50 more of your money in your pocket every month than you had under Labour. That is part of the way that the Liberal Democrats in government are building a stronger economy in a fairer society so that everyone can get on in life.
You can read Danny Alexander’s article in full here.
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2 Comments
According to government figures in answer to a question from me, the number of people in work paying no income tax is already 4.8 million. These are the people who will not benefit at all from the increase in the personal allowance next year. This year the figure is 4.3 million. If the government genuinely wants to increase incentives to work for the people who are on low-pay margin of work (often in part-time jobs and in and out of work) they need to do something about providing this group with similar advantages to the people who will “keep £50 (or whatever) in their pocket” as a result of the changes to personal allownace.
Tony Greaves
Tony Greaves: I suppose that 4.8 million (or is it 4.3 – why is it going down?) would include my daughter who works one day a week while on an MSc course. There needs to be some breakdown of the 4.8 million, but I am really not sure what Tony Greaves has in mind.