Boosting Family Finances

James Brokenshire has welcomed tax changes which will see families across Bexley keeping more money in their pockets.

From the start of the new financial year (6 April), the thresholds for paying income tax and the higher rate of income tax have increased. The personal tax allowance has been raised to £12,500, an increase of £650 – almost double what it was under Labour. This means a basic rate taxpayer will pay over £1,200 less income tax than they did in 2010, giving people more money in their pockets.  The amount people will have to earn before they pay tax at 40 per cent will increase from £46,350 to £50,000

Conservative income tax cuts have taken 1.74 million of the lowest paid workers out of paying income tax altogether and taken 230,000 people out of the higher rate 40% tax bracket since 2015.

As well as cutting taxes for millions of people a year earlier than planned, fuel duty has been frozen for a ninth year in a row, saving those who use a car to travel to work and visit family thousands of pounds.

From 1 April new rates of the National Living Wage have increased by 4.9 per cent increase – handing a full-time worker a further £690 annual pay increase and taking his or her total pay-rise, since the introduction of the National Living Wage, to over £2,750 a year.

Commenting, James Brokenshire said:

“The Conservatives have always been committed to keeping taxes down so people can keep more of their hard-earned money, and these measures are good news for over 43,000 people in Old Bexley & Sidcup who will see their taxes cut.

“We have once again cut income tax for workers and frozen fuel duty again, meaning a bit more money in people’s pockets at the end of the month. Our increase to the National Living Wage mean millions of the lowest paid will receive a pay rise. We can only continue cutting taxes and increasing pay through our balanced approach to the economy.”