David Cameron has closed the Conservative Party conference with a promise in his keynote speech to cut taxes for 30 million people if the party wins a majority in next year’s election.
The Prime Minister said a Conservative government would raise the threshold for the 40 per cent income tax rate to £50,000, up from its current level of £41,900.
He said: “The 40p tax rate was only supposed to be paid by the most well-off people in our country but in the past couple of decades, far too many have been dragged into it: teachers, police officers.”
The tax-free personal allowance is also set to rise, from £10,500 to £12,500, taking an extra one million people out of income tax.
Someone earning minimum wage and working a 30-hour week will pay “nothing, zero, zilch”, Cameron said.
Cameron also said the Conservatives are already righting the “three great wrongs” of pension credit, compulsory annuites and the death tax on pensions.