01-13-2025, 08:21 PM
The Liberal Party believes that working families should be able to retain more of their income after tax. Instead, successive government have left tax allowances frozen, effectively increasing the tax take as inflation pushes up wages.
As we were recently reminded personal tax allowance has not been raised since 2021 and would otherwise have risen in line with inflation from £12570 to £15228 pa leaving working people with more of their own money.
Even for higher earners the £100k limit at which the marginal rate is set at 50% set in 2010 would have otherwise risen to £151123.
The Liberal Party believes that by raising the tax threshold to £20,000, we would take millions of low paid out of the fiscal drag that had affected so many taxpayers.
Furthermore, we would also reform the benefits system to ensure that work always pays, and that people are incentivised to go out to work over being trapped on benefits. This would encourage more people into work and grow the economy. It would also lift many pensioners out of financial hardship.
We need to increase the cap on people studying or working from 16 hours per week to at least 24 hours per week.
The failure to raise these tax limits is diminishing working families’ purchasing power at a time when the cost-of-living crisis and energy prices rises are again threatening families’ finances.
As we were recently reminded personal tax allowance has not been raised since 2021 and would otherwise have risen in line with inflation from £12570 to £15228 pa leaving working people with more of their own money.
Even for higher earners the £100k limit at which the marginal rate is set at 50% set in 2010 would have otherwise risen to £151123.
The Liberal Party believes that by raising the tax threshold to £20,000, we would take millions of low paid out of the fiscal drag that had affected so many taxpayers.
Furthermore, we would also reform the benefits system to ensure that work always pays, and that people are incentivised to go out to work over being trapped on benefits. This would encourage more people into work and grow the economy. It would also lift many pensioners out of financial hardship.
We need to increase the cap on people studying or working from 16 hours per week to at least 24 hours per week.
The failure to raise these tax limits is diminishing working families’ purchasing power at a time when the cost-of-living crisis and energy prices rises are again threatening families’ finances.