Clwyd West MP, David Jones, has welcomed income tax cuts for local people that deliver on the Conservatives’ key election promise to raise the personal income tax allowance.
In the Summer Budget, Chancellor George Osborne set out the next steps in Conservative plans to support working people by ensuring they keep more of the money they earn:
A first step toward a £12,500 Personal Allowance by the end of this Parliament: in 2016-17, the personal tax-free allowance will increase by £400 to £11,000, so that next year a typical rate income taxpayer will be £905 better off compared with 2010.
Delivering on the promise to raise the higher rate threshold: in 2016-17, the threshold for the higher rate of tax will increase from £42,385 to £43,000, saving the typical higher rate taxpayer £142 and lifting 130,000 people out of the rate altogether. This is a first step on the Conservatives’ commitment to raise the threshold to £50,000 by the end of the Parliament.
The Summer Budget also introduced a new National Living Wage for over 25s to support people who work hard and do the right thing. The new National Living Wage will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third this Parliament, a cash increase for a full time worker of over £5,000.
David Jones said:
‘The new National Living Wage, combined with the income tax cuts, are excellent news for hardworking people in Clwyd West, and shows that Conservatives deliver on their promises.
‘The rise in the personal allowance will mean lower taxes for around 33,850 working people in Clwyd West, with an estimated 700 people taken out of income tax altogether.
‘The rise in the 40p threshold will also mean that fewer people in this constituency will now pay the 40p rate of tax.
‘That means local people keeping more of the money they have worked hard to earn, giving them and their families more financial security for the future.’