Borderers welcome Income Tax cut

changes to income tax levels will have filtered through to last month’s pay packets.

In the Scottish Borders, this is expected to mean around 2,200 people will no longer have to pay Income Tax and a further 43,000 will get their first cheque with an increase in take-home pay.

The Income Tax threshold, the point from which people start paying their taxes, has been raised by £1,000 to £7,475.

This increase is the first step toward the Liberal Democrat commitment to raise the Income Tax threshold to £10,000, with a further rise of the threshold due in 2012.

Commenting, Michael Moore Borders MP said: “At a time when people are worried about their personal finances, this tax cut will help millions of people.

“Over 45,000 people in the Borders will have their first pay cheque with a little extra thanks to the Liberal Democrat tax cut.

“One way we are paying for this is by taxing the banks more, £10 billion more, so they pay their share.”

Deputy Prime Minister and Liberal Democrat Leader, Nick Clegg added: “Last week, when millions of people on low and middle incomes received their pay packet, they found they had a little bit more in it because of the Liberal Democrats.

“This tax cut comes straight from the front page of our manifesto to the back pockets of millions of taxpayers.

“These are difficult times, but the Liberal Democrats are helping to make life a little easier for people who want to see their hard work rewarded.

“Last month, Liberal Democrats lifted nearly 900,000 of the poorest workers out of paying Income Tax altogether and gave a £200 cash tax cut to 23 million people.

“This is just the first instalment. In the March Budget we ensured that next year even more people will be lifted out of tax with a further tax cut for millions more people.”