Liberal Democrat MPs are calling on the Chancellor to speed up on delivering the coalition’s promise to raise the income tax threshold to £10,000 by 2015.
An early day motion posted yesterday has been signed by 14 Liberal Democrat MPs and one Conservative MP. It says the previous increases in the personal allowance has already taken 800,000 working people out of income tax and given 23 million people a £200 tax cut.
It says: “The commitment to increasing the threshold to £10,000 will save working people £700 a year and take millions of the lowest paid workers out of the tax system. We call on the Chancellor of the Exchequer to go further and faster in his 2012 Budget.”
It comes after Liberal Democrat leader and Deputy Prime Minister Nick Clegg said earlier this month that he wants the coalition to deliver on the promise before 2015, “because pressure on family finances is reaching boiling point”.
The motion has been signed by Liberal Democrat MPs Alan Beith, Tom Brake, Annette Brooke, Andrew George, Duncan Hames, Mike Hancock, Stephen Lloyd, Alan Reid, Dan Rogerson, Bob Russell, David Ward, Mark Williams and Stephen Williams. It has also been signed by Conservative MP Robert Halfon.
Another EDM signed by 41 MPs condemns the practice of people in the private and public sector being paid through a limited company to reduce their tax bills. Earlier this month, the Government launched an inquiry into the practice after it emerged 25 Department of Health civil servants are paid through limited companies.
All-party Parliamentary group on taxation chair Ian Liddell-Grainger told Money Marketing they should end the practice voluntarily or face the sack.