David Tredinnick MP has welcomed further income tax cuts for hardworking people in Hinckley & Bosworth, delivering on the Conservatives’ key election promise to raise the personal allowance.
In the Summer Budget, the Chancellor set out the next steps in his plan to support working people by ensuring they keep more of the money they earn:
· A down payment on a £12,500 Personal Allowance: in 2016-17, the personal tax-free allowance will increase by £400 to £11,000, so that next year a typical rate income taxpayer will be £905 better off compared with 2010. This is part of the Conservative commitment to raise the allowance to £12,500 by the end of the parliament.
· Delivering on the promise to raise the higher rate threshold: in 2016-17, the threshold for the higher rate of tax will increase from £42,385 to £43,000, saving the typical higher rate taxpayer £142 and lifting 130,000 people out of the rate altogether. This is a first step on the Conservative commitment to raise the threshold to £50,000 by the end of the parliament.
The Summer Budget also introduced a new National Living Wage for over 25s to support people who work hard and do the right thing. The new National Living Wage will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third this Parliament, a cash increase for a full time worker of over £5,000.
David Tredinnick said, “I welcome the Chancellor’s clear plan to deliver security for working people. The new National Living Wage combined with the income tax cuts are excellent news for hardworking people in Hinckley & Bosworth, and shows we are delivering what we promised.
“The rise in the personal allowance will mean lower taxes for around 45,568 working people here in the Bosworth constituency, with an estimated 933 people taken out of income tax altogether. Also, the rise in the 40p threshold will mean fewer people in my constituency paying the 40p rate of tax.
“These key measures mean local people keep more of the money they have worked hard to earn, giving them and their families more financial security for the future.”