View more on these topics

10P rate rescue will continue

The Government has committed to extending its 2.7bn 10p tax compensation package to future years.

The Institute for Fiscal Studies called on the Government last week to extend its “one-off income tax cut” after it calculated that 18 million families would be worse off by an average of over 150 a year as a result of tax and benefit changes over the next two years.

In early May, the Chancellor set out a 2.7bn package to compensate some of the 5.3 million people affected by the abolition of the 10p tax rate. It involves increasing personal allowances. The Government expects the package to give 22 million people an extra 120 this year.

But the Government was slammed for not confirming whether the support would extend to future years. Conservative Shadow Chancellor George Osborne said Gordon Brown’s “cynical manoeuvre to save his own political skin will leave 18 million people facing a tax rise next year”.

But the Treasury confirmed to Money Marketing that lowearners would receive similar support in future.

A spokesman said: “For future years, our aim is to continue the same level of support for those on lower incomes. We will set out our plans for future years in the pre-Budget report.”

Recommended

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com