ALEXANDER A BUDGET FOR THE MILLIONS, NOT THE MILLIONAIRES

22-Mar-2012

In the Budget Statement, the Chancellor of the Exchequer confirmed that the Government would move forward with plans to increase the income tax threshold to £10,000. Next year the threshold will increase to £9,205 in a move that will give 2.1 million people in Scotland a tax cut, with basic taxpayers keeping an additional £220 of their earnings.

In the Highlands alone, 94,000 people will see a tax cut in 2013/14 and 3,000 more people will be raised out of paying tax altogether.

As well as the general measures announced in the Budget, the Chancellor confirmed that to support growth and investment, the Government will make 100% capital allowances for plant or machinery investment available to designated sites within the new Scottish enterprise zones – including the Nigg site on the Cromarty Firth. This measure has the potential to deliver more than 4,000 new jobs in Scotland.

Following a long running Highland Liberal Democrat campaign, the budget also included a VAT cut on ski lifts of 5per cent - providing real help to the industry.

The Chancellor also announced a crackdown on tax avoidance, including the introduction of a new general avoidance law, and a new rate of stamp duty of 7% on houses worth more than £2 million. The costs of a cut in the 50p rate next year will be offset by these and other measures which will raise at least five times as much from the wealthy every year in other ways.

Highland MP Danny Alexander says:

"Liberal Democrats have been clear in our priorities for the Budget. We wanted to see a Budget for the millions, not the millionaires.

"Raising the Income Tax threshold is a key Liberal Democrat commitment that the Coalition Government is implementing. Many hard working people, in the Highlands and across the UK, will benefit from the tax cut. The increase of £1100 is worth £220 to 21 million working people – taking the total income tax cut for working people delivered by the coalition to nearly £550 a year. Two million people will pay no income tax at all.

"Liberal Democrats in the Coalition Government are doing the right thing to clear up the mess Labour left behind, making sure the wealthiest pay their fair share by clamping down on tax avoidance, introducing a ‘tycoon tax' and putting an end to stamp duty dodging by the super rich."

ENDS