Chancellor’s Summer Budget delivers tax cut for 87,000 workers across York
July 8, 2015
Julian has welcomed the news that thousands of workers across York will benefit from tax cuts, as the Chancellor’s Budget delivered on the Conservatives’ key election promise to raise tax thresholds.
Changes to the personal allowance will result in 87,000 workers across York receiving a tax cut in April 2016, with a further 2,000 of York’s lowest earners being taken out of income tax altogether. As a result of the tax changes, average taxpayers are now around £900 a year better off than they were in 2010.
Thousands of lower paid workers will also receive a pay rise as the Minimum Wage is set to be abolished and replaced by a Living Wage of £7.20 / hour from April 2016, rising to around £9 / hour by 2020. The Government has also continued to clamp down on tax avoidance, providing HMRC with more resources to pursue aggressive tax avoidance, as well as abolishing the status of permanent non-doms who avoid paying British taxes. Fuel duty was also frozen for another year, and the 2% NATO commitment for defence spending will be met.
Commenting on the Budget, Julian said “This is a sound budget that builds on the work over the last five years, delivering fiscal responsibility against the backdrop of a Euro-zone in crisis. Britain is the fastest growing major developed economy in the world for the second year in a row, and unemployment across York is a fraction of what it was five years ago.“
“However, the Chancellor admitted that we still need to do more to boost productivity, which is why I am delighted that the Budget focused heavily on skills. Reducing corporation tax, boosting the Employment and Annual Investment Allowances, as well introducing the Living Wage are all essential components to building a High Pay, Low Tax, Low Welfare economy. That is the best way to provide new jobs and opportunities whilst allowing people to keep more of their own money.”