Deputy prime minister Nick Clegg is to call for the coalition Government to go “further and faster” in increasing the income tax threshold to £10,000 a year.
Clegg (pictured) will make the call to bring forward raising the income tax threshold at a speech to the Resolution Foundation in London later today, the BBC reports.
The income tax threshold was raised by £1,000 to £7,475 in last year’s Budget, with plans to increase it again to £8,105 this year. The Government has pledged to raise the threshold to £10,000 by the next election, expected in 2015.
Clegg will 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.
“These families have seen their earnings in relative decline for a decade, compared to those at the top. That has accelerated since 2008, with lower real wages and fewer hours at work.”
He will add that in the coalition’s time in office it has raised capital gains tax and reduced tax breaks on pension funds “for the very rich”, and has also clamped down on tax avoidance to raise an extra £7bn a year.
Clegg will also pledge to reduce the UK’s deficit “in a way that is fair”.
Clegg is expected to say: “People look to the Liberal Democrats to keep this coalition anchored in the centre ground. They want economic competence, but they want compassion too.
“It is our job to make sure this government delivers both.”