02 Oct 2014
Prime Minister David Cameron has pledged to raise both the personal tax allowance and the 40p income tax band, in a pledge to benefit millions of earners.
In the recent Conservative conference, Mr Cameron said that the tax-free allowance would go up from £10,500 to £12,500 by the year 2020. The threshold for the 40p tax rate would also go up from £41,900 to £50,000.
The total number of people estimated to benefit from these changes is 30 million. But the cuts are not expected until around 2018, when the party hopes to have the budget deficit eliminated.
Mr Cameron said: ‘I am not a complicated man, I believe in some simple things. Families come first, they are the way you make a nation strong from inside and out. If you work hard, we will cut your taxes, but only if we keep on cutting the deficit, so we can afford to do that’.