Government to deliver tax cut for working families in 2014

The coalition government is delivering a £700 income tax cut for 24.5 million working people throughout the UK a year ahead of schedule.

Orig…

The coalition government is delivering a £700 income tax cut for 24.5 million working people throughout the UK a year ahead of schedule.

Originally the scheme, which was proposed as a top priority by the Liberal Democrats, was set to be implemented in 2015, however it was confirmed in the Budget that it will now be achieved in April 2014.

As a result, the income tax threshold will be raised to £10,000, meaning 2.7 million low-paid workers will no longer pay income tax at all.

For the average family, this means income tax will be slashed by a third, allowing a working couple to pay their council tax or energy bills with the savings.

Liberal Democrat chief secretary to the Treasury Danny Alexander said: "When times are as tough as they are now, our focus must be on helping those on low and middle incomes. That's why we've made delivering on this promise our number one priority in government."

Although these measures will be implemented next April, people on low incomes will see savings as early as next month as personal allowance is set to riseise to £9,440, resulting in a £600 tax cut for working people.

Mr Alexander said his party wanted to extend the measures even further after the next election so that those paying minimum wage would not pay any income tax.

This income tax cut will be welcome news to those currently struggling to make ends meet. With people finding themselves unable to pay bills due to spiralling debt, this extra £600 from the government could become very useful.

Also announced during the Budget was more funding for childcare to allow parents to have more money in their pocket as well as a freeze in fuel duty, which will help people who rely on their car or van to get to and from work.

By James Francis

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