Sir Edward Leigh MP has welcomed a number of the moves announced in the Chancellor’s budget statement today, Wednesday March 19, which will save money for Lincolnshire residents.
He said: “Earners will find the personal tax allowance will rise to £10,500 from April 2015, cutting taxes for 25 million people and taking another 290,000 people out of paying income tax altogether.
“Rises in the personal allowance since 2010 mean that by April next year a typical basic rate taxpayer will be paying £805 less in tax than they would have been, with 3.2 million people taken out of income tax altogether.
“The budget measures do not result in any additional higher rate taxpayers. The full benefit will be passed on to higher rate taxpayers – everyone earning up to £100,000 will gain equally and will pay less tax because of this tax cut.
“Meanwhile, savers will benefit from merging the cash ISA and stocks & shares ISA into a single New ISA with an annual limit of £15,000. The over 400,000 ISA holders in the East Midlands could benefit from the New ISA.
“Savers will also be glad to hear the 10p starting rate of tax for savings income will be reduced to 0p and extended to the first £5,000 of savings income, benefiting 1.5 million low-income savers.
“In the biggest reform of pensions taxation in a century, the Chancellor announced that no one would be forced to buy an annuity if they don’t want to and there will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum.
“Drinkers will find savings as the tax on beer will be cut by a penny a pint, helping local pubs. Duties on Scotch whisky and other spirits will be frozen, as will duty on ordinary cider. The duty escalator for wine, meanwhile, has been abolished.
“This budget brings real results for people here in Lincolnshire,”
“Earners will find it easier to take home more money with the increase in the personal tax allowance. Savers will find their hard-earned savings will be taxed less. Drinkers will find duty frozen or cut on their poison of choice.”
“There’s still more that can be done. Far too many middle-income earners have been pushed into paying a higher rate of tax, and overall the entire tax system could do with more simplification, especially for small businesses.
“The Chancellor has made some difficult decisions, but he has delivered a budget which will benefit ordinary, working people, and that will go a long way towards putting our families and our country in finer fiscal shape.”