TaxPersonal TaxClegg: Raise income tax threshold ‘further and faster’

Clegg: Raise income tax threshold 'further and faster'

Deputy prime minister expected to outline plans to accelerate introducion of £10,000 starting rate for income tax in speech today

NICK CLEGG will say today that he wants to accelerate plans to raise the threshold for paying income tax to £10,000.

The deputy prime minister will say that he wants the coalition government to go “further and faster” in raising the pay level at which people start paying income tax to £10,000 a year, the BBC reported.

The deputy prime minister will argue that many families are at financial “boiling point” and need more relief, the BBC said.

The coalition has promised to raise the income tax threshold to £10,000 by the next election, set for 2015.

The income tax threshold was raised by £1,000 to £7,475 in the 2010 Budget, and the government plans to increase it further to £8,105 this year.

Clegg is expected to say: “Today I want to make clear that I want the coalition to go further and faster in delivering the full £10,000 allowance, because the pressure on family finances is reaching boiling point.”

At the last election, the Lib Dems pledged to raise the income tax threshold to £10,000 a year. The coalition agreed to implement this policy during this Parliament.

The deputy PM’s speech to the Resolution Foundation in London follows official figures showing the economy shrank by 0.2% in the final quarter of 2011.

It also comes ahead of the Budget on 21 March, increasing speculation that changes to tax thresholds could be announced.

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