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Millions receive Income Tax cut – Moore

May 3, 2011 10:28 AM
Originally published by Scottish Liberal Democrats

Last week, many of the nearly 900,000 people who have been lifted out of paying Income Tax and the 23m basic-rate tax payers who have received a £200 tax cut, received their first pay cheques since the changes came in.

The Income Tax threshold, the point from which people start paying their taxes, has been raised by £1,000 to £7,475.

This increase is the first step toward the Liberal Democrat commitment to raise the Income Tax threshold to £10,000, with a further rise of the threshold due in 2012.

In the Scottish Borders, this is expected to mean around 2,200 people will no longer have to pay Income Tax and a further 43,000 will get their first cheque with an increase in take-home pay.

Commenting, Michael Moore MP said:

"At a time when people are worried about their personal finances, this tax cut will help millions of people.

"Today, over 45,000 people in the Borders will have their first pay cheque with a little extra thanks to the Liberal Democrat tax cut.

"One way we are paying for this is by taxing the banks more, £10bn more, so they pay their share."

Commenting further, Deputy Prime Minister and Liberal Democrat Leader, Nick Clegg said:

"Last week, when millions of people on low and middle incomes received their pay packet, they found they had a little bit more in it because of the Liberal Democrats.

"This tax cut comes straight from the front page of our manifesto to the back pockets of millions of taxpayers.

"These are difficult times, but the Liberal Democrats are helping to make life a little easier for people who want to see their hard work rewarded.

"Last month, Liberal Democrats lifted nearly 900,000 of the poorest workers out of paying Income Tax altogether and gave a £200 cash tax cut to 23m people.

"This is just the first instalment. In the March Budget we ensured that next year even more people will be lifted out of tax with a further tax cut for millions more people."


1. The raising of the Income Tax threshold to £10,000 was a priority for the Liberal Democrats in the General Election: it was one of four policies we put on the front of our manifesto (along with the pupil premium; a rebalanced economy; and long-lasting political reform).

2. We have already started to deliver on all four of those key priorities.

3. By 2012/13, the Income Tax Threshold will be raised to £8,105, meaning that Liberal Democrats will have lifted 1.1 million people out of paying tax and will have given 25 million people a tax cut worth £326.