Nigel Evans, MP for the Ribble Valley, has hailed the government’s new tax threshold as a ‘massive victory’ for households across the UK as it came into force this week. Announced in the Autumn Budget by Chancellor Phillip Hammond, the change will increase the tax-free personal allowance from £11,500 to £11,850 – keeping to the commitments in Theresa May’s manifesto.
Approximately thirty million workers will get a tax cut due to the most recent cut. A typical basic rate taxpayer will now be paying £1,075 less income tax than in 2010, when the coalition government began a thorough programme to take the low-paid out of tax. Higher rate taxpayers in England, Wales and Northern Ireland will also benefit, with the 40p tax threshold jumping from £45,000 to £46,350, producing an annual saving of £270.
Speaking from the Ribble Valley, Nigel Evans said:
“I applaud the government’s commitment to increasing the tax-free personal allowance once again. From today millions of people be able to keep more of their hard-earned money, whilst thousands will be taken out of tax altogether. This fantastic news and means the tax-free threshold will have risen by nearly £5,500 since 2010.”
Other sweeping financial changes have been implemented today, which marks the start of the new financial year. These include an increase in the National Living Wage by 4.4 per cent, from £7.50 and hour to £7.83, benefitting over two million workers. Furthermore, the threshold for repaying student loans will rise from £21,000 to £25,000, saving graduates up to £360 a year.
Continuing, Mr Evans said:
“This government is taking real strides to increase standards of living for hard-working people by cutting income tax, increasing the living wage and freezing fuel duty for the eight year running. These implementations give people more security, more disposable income, and more opportunities.”
The government has pledged to keep its commitment of increasing the personal allowance to £12,500 by 2020-21.