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Government plans to introduce a tax break for married couples

The Government is considering introducing a tax break for married couples before the next election in 2015, according to the BBC.

The report cites Treasury sources who deny that any new tax break is a reaction to the backlash to child benefit cuts announced by the Chancellor George Osborne yesterday.

Osborne said that from 2013 child benefit will be removed from families with at least one parent earning more than £44,000 a year and it attracted a negative reaction from the press.

In April the Conservatives outlined their plans to give four million married couples and civil partners and annual £150 tax break which would have applied to basic rate tax payers earning under £44,000 where one partner did not use their full tax-free income allowance.

The policy never made the coalition agreement which gives Liberal Democrat MPs the right to abstain on “budget resolutions to introduce transferable tax allowances for married couples” without prejudice to the coalition agreement.

At the time the Liberal Democrats were reported as calling the plan “patronising”.

The report came as Work and Pension Secretary Iain Duncan Smith was giving his speech to the Conservative party conference in Birmingham.

In it he explained the need for the crackdown on a system which “penalises the choice of work” from the point of view of working families.

“They know that it is right to pay taxes to help those in real need; all they ask is fairness from the government when they do,” he said.

He said working couples seeing their taxes paying for an unemployed family living in a house worth £100,000 was “unfair”.

He said: “It has to end and I promise you today: It will end.”

Smith also announced a fund to help long term unemployed people set up a businesses.

Duncan Smith said the move would mean people would no longer be able to say it is not worth their while going to work.

He said: “If you have been unemployed for six months and want to start your own business we want to support you. We will provide business mentoring and a financial package worth up to £2000 to get your business up and running.”

Smith said the government want to see 10,000 new small businesses by next year.

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