Leicestershire Liberal Democrats welcome tax news

Liberal Democrat Councillors in Leicestershire have welcomed the news that due to changes in the national tax system, implemented by Liberal Democrats in the Coalition Government, around 10,680 of Leicestershire's least well off residents will not pay any income tax at all and a further 304,500 residents could also be paying up to £200 a year less in income tax, when the changes come into effect in April this year..

After pressure from the Liberal Democrats their coalition partners have also agreed to a longer term policy objective of further increasing the personal allowance in further real terms steps each year towards the objective of a tax free allowance of £10000. Achieving this would provide much greater tax fairness towards the poorest in our society, something Liberal Democrats are committed to.

Speaking about the great news Cllr Keith Lynch, Liberal Democrat Spokesman for Finance said

"this is a fantastic piece of news for leicestershire's hard pressed residents, it is real money that will be left in the pay packet and benefits of both low and middle income households."

By district the impact will be:

In Leicestershire the changes proposed will lift the threshold for paying income tax by £1000 in April to a figure of £7475 means that approximately 10,680 residents in Leicestershire will pay no income tax at all, while a further 304,500 will pay less. The figures have been calculated on publicly available statistics and are not exact numbers.

The change is being funded with the money that Tories would have used to pay for the increase in Employee National Insurance thresholds proposed, as well as revenues from increases in Capital Gains Tax rates for non-business assets that will affect higher earners.