Around 8,200 people in South East Wales will no longer have to pay Income Tax and a further 241,000 will get £200 extra in their pockets.
Liberal Democrats in Government secured a rise in the Income Tax threshold, the point from which people start paying their taxes, of £1,000 to £7,475 which comes into force today.
Across Britain nearly 900,000 people will be lifted out of paying Income Tax while around 23m basic-rate tax payers will get an extra £200 in their pockets.
This increase is the first step toward the Liberal Democrat commitment to raise the Income Tax threshold to £10,000, with a further rise of the threshold was announced in the budget for 2012.
Commenting, South Wales East Regional Candidate Veronica German, said:
“At a time when people are worried about their personal finances, this tax cut will help millions of people.
“In South East Wales, 241,000 will get an extra £200 to spend this year and I know this will make a real difference.
“I am proud that thanks to Liberal Democrats in Government, almost a million people will be lifted out of paying tax altogether across the country, while 23m people will get a tax cut.
“This tax cut is straight from the front page of our manifesto to the pockets of 23m tax payers.”
Commenting further, Deputy Prime Minister and Liberal Democrat Leader, Nick Clegg, who visited Bettws last week, said:
“We have to make difficult decisions but we can still make life fairer and that’s what Liberal Democrats in government and across Britain are doing.
“From today Liberal Democrats have delivered a £200 income tax cut to every basic rate taxpayer, and there’s more to come – our ambition is a country where no one pays any income tax on the first £10,000 they earn.
“These are the kind of decisions Liberal Democrats are making in Government to make life just that little bit easier for people who are facing difficult times.”
1. The raising of the Income Tax threshold to £10,000 was a priority for the Liberal Democrays om the General Election: it was one of four policies we put on the front of our manifesto (along with the pupil premium; a rebalanced economy; and long-lasting political reform).
2. We have already started to deliver on all four of those key priorities.
3. By 2012/13, the Income Tax Threshold will be raised to £8,105, meaning that Liberal Democrats will have lifted 1.1 million people of of paying tax and will have given 25 million people a tax cut worth £326.