Tax Thresholds
Treasury
John Leech (Manchester, Withington, Liberal Democrat)
To ask the Chancellor of the Exchequer what assessment he has made of the potential effects on low and middle income earners of raising the income tax threshold to £10,000.
David Gauke (Exchequer Secretary, HM Treasury; South West Hertfordshire, Conservative)
The Government have a long term goal to increase the personal allowance to £10,000, with real terms steps in that direction every year.
The Government believe that this will support low and middle income earners and improve the rewards to work.
The increases announced by this Government, so far will benefit 2.5 million individuals and take 1.1 million people out of income tax altogether from April. Basic rate taxpayers will gain by £210 a year in real terms in 2012-13.