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Income tax cut will benefit thousands of low and middle income workers in Wales - Kirsty Williams

March 21, 2012 2:18 PM

A further 42,000 workers in Wales taken out of paying income tax

Over 1,000,000 million workers in Wales receiving a further £220 tax break.

Financial year

Personal tax allowance

Value of tax cut

Number taken out of tax

Number receiving tax cut

2010/11

£6,475

-

-

-

2011/12

£7,475

£200

40,000

Over 1 million

2012/13

£8,105

£130

51,200

Over 1 million

2013/14

£9,205

£220

Total:

£550

42,000

Total:

133,200

Over 1 million

Reacting to today's budget announcement, Kirsty Williams, Leader of the Welsh Liberal Democrats said:

"In difficult times, we believe that people on low and middle incomes should get the help they need and that is why I am pleased that the Liberal Democrats have been able to persuade the Chancellor to increase the personal income tax threshold. This will give hard working people in Wales more of their money back in their pockets and it will also incentivise people to get off benefits and into work. Since 2010, 133,200 workers in Wales have been lifted out of paying income tax and a further 1.1 million will see more of their salary in their pocket thanks to the Liberal Democrats. We will continue towards ensuring that no worker pays tax on the first £10,000 they earn so that they will see £700 back in their pocket every year.

"We have heard many times about the need to make tough choices in these difficult times. The choice for us is clear, lift the burden for the people who are struggling the most now and ensure the wealthy pay their fair share.

"This is a budget for the many, not the few and I am extremely pleased that the Liberal Democrats have delivered on our promise to help workers on low and middle incomes in Wales and the UK. We will now see wealthier people in our society paying more taxes. It is only fair that those with the wider shoulders should carry the burden and that's what we've seen in this budget."

Commenting on other measures in the Budget, Jenny Willott MP said:

"This Budget is good news for Cardiff. The Chancellor announced that our city will receive £12 million for ultra-fast broadband, and that Westminster will work with the Welsh Government to look at electrification of the Valleys railway lines.

"The Coalition is doing all this whilst making sure that rich pay more. The Government is introducing measures that mean the richest in society will pay five times more than they currently do through the 50p highest rate of tax.

"This Budget has the Lib Dems stamped all over it. It shows the Government's dedication to helping struggling families and proves that the Lib Dems are making a real difference in Government."