With household budgets being squeezed in Cheshire West and Chester local Liberal Democrats have welcomed calls by Deputy Prime Minister Nick Clegg to speed up income tax cuts to help families through the spending squeeze. Last year, local residents saw an income tax cut of up to £200 when the Coalition put into action the first stage of the Liberal Democrat election pledge to raise the amount of money people can earn before they have to pay tax to £10,000. This April residents will see another tax cut, of £130, when the tax threshold is raised further. Liberal Democrats are arguing that with the Euro crisis slowing the economy down, faster income tax cuts would help to stimulate growth and get more people back into work.
“Household budgets in Cheshire West and Chester have been squeezed over the past three years because of the financial crisis,” said Neil Christian. “The Coalition has agreed that by the end of this Parliament in 2015, no one will pay tax on the first £10,000 they earn. That was the top Lib Dem commitment at the last General Election. “Bringing forward the income tax cut will not only help households it will help local shops and businesses as people will keep more of the money they earn to spend as they think fit, rather than have it taken away by the Government.” “The tax cuts can be paid for by increasing taxes on the richest. In Government, Liberal Democrats have increased
capital gains tax paid by the wealthiest. We have introduced a tax on banks and we are targeting tax avoiders. “These measures will help to cut the Deficit and give us the money we need to cut taxes for hard working people on low and middle incomes. But clearly we need to go further. That’s why I am pleased that Liberal Democrat ministers are pressing for the income tax cuts to be speeded up.”