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The Prime Minister Cuts Tax to Slash Rebellion
14/05/2008
The Prime Minister Cuts Tax to Slash Rebellion
The Prime Minister has issued a seminal statement indicating he would be presenting Britain with £2.7bn worth of tax cuts.
This comes after Mr. Brown's move to abolish the 10p tax rate was met with national derision and parliamentary rebellion. The Prime Minister hopes that, by compensating many of those who lost out as a result of the 10p tax cut, he will avert a serious political crisis.
The changes will be worth £120 a year to the 22 million basic rate taxpayers, and the Chancellor, Alistair Darling, also announced his intentions to increase personal allowances by £600 to £6,035 for this financial year.
Mr. Darling explained to members of parliament that the proposals would mean:
-4 out of 5 of the 5.3 million households that have lost out from the 10p band's abolition will be reimbursed in full and the remaining by at least half.
- 600,000 people on low incomes will be made exempt from tax altogether.
-The level at which the 40p rate is paid will be brought down so higher earners will not gain or lose from the change.
The Chancellor was quoted in today's Guardian explaining the proposal as: "a family tax cut that provides support for those on middle incomes."
The Prime Minister has issued a seminal statement indicating he would be presenting Britain with £2.7bn worth of tax cuts.
This comes after Mr. Brown's move to abolish the 10p tax rate was met with national derision and parliamentary rebellion. The Prime Minister hopes that, by compensating many of those who lost out as a result of the 10p tax cut, he will avert a serious political crisis.
The changes will be worth £120 a year to the 22 million basic rate taxpayers, and the Chancellor, Alistair Darling, also announced his intentions to increase personal allowances by £600 to £6,035 for this financial year.
Mr. Darling explained to members of parliament that the proposals would mean:
-4 out of 5 of the 5.3 million households that have lost out from the 10p band's abolition will be reimbursed in full and the remaining by at least half.
- 600,000 people on low incomes will be made exempt from tax altogether.
-The level at which the 40p rate is paid will be brought down so higher earners will not gain or lose from the change.
The Chancellor was quoted in today's Guardian explaining the proposal as: "a family tax cut that provides support for those on middle incomes."