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Claire Ward has welcomed the Chancellor of the Exchequer’s announcement of an increase in personal tax allowances which will benefit all basic tax payers under 65.
For this financial year the personal tax allowance will increase by £600 to £6035, will apply to all income for this tax year and will be backdated to 6 April. 22 million people in low and middle incomes will gain an additional £120. 4.2 million households out of the 5.3 million households will receive as much – or more than – they originally lost due to the abolition of the 10p tax rate with the remaining 1.1 million households seeing their loss at least halved.
From September basic rate taxpayers will see a one-off increase in their monthly income of £60 and then an increase of £10 per month for the rest of the financial year. 600,000 people on low incomes will be taken out of tax altogether.
Claire said, “I am delighted that the government have decided to take this action. I know that many of my constituents in Watford are concerned about rising prices and increased bills. Clearly the government recognises this. The extra support will be invaluable to many people across the UK and is the fairest, quickest and most effective way to help all those affected as a result of the changes to income tax proposed last year.”
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