James Brokenshire has praised Government action to cut income tax for hard working people and helping take low earners out of tax altogether. Around 33,346 people in Old Bexley & Sidcup are expected to benefit from the biggest income tax cut in a generation which comes into effect today.
From 6th April the personal allowance - the amount of money people can earn before paying any income tax - rises by £1,335 to £9,440. As a result of the largest ever cash rise in the allowance, most basic rate tax payers will be paying pay up to £600 less income tax this year than in 2010.
An estimated 2,743 people who live in the Old Bexley & Sidcup constituency will have been lifted out of income tax altogether by the Government. Together with previous tax cuts, 2.2 million people across the country will have been taken out of income tax.
Welcoming the increase in the personal allowance, James Brokenshire said:
“This tax cut will reward people wanting to get on in life by letting them keep more of the money they’ve worked hard to earn. It will deliver direct financial help for people on low and middle incomes. I welcome the fact that the Government isn’t stopping here. The Chancellor of the Exchequer’s commitment in the recent Budget to increase the personal allowance to £10,000 next year will take 2.7 million of the lowest earners out of income tax altogether since the election.”