Alexander backs higher tax-free allowance

UK Political Correspondent

Saturday 23 February 2013

Danny Alexander has thrown his weight behind calls to raise the tax-free allowance on wages to £12,500 after the next election.

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Kate Devlin UK Political Correspondent

The move is the latest salvo in the battle between political parties to be seen as helping hard-working "strivers".

The Liberal Democrat Chief Secretary to the Treasury said no workers on the minimum wage should pay tax.

Next year the Tory-LibDem Coalition plans to increase the tax-free allowance to £10,000. The move will fulfil a pledge that appeared on the front page of the LibDems' 2010 manifesto. Mr Alexander said he was keen to see the level raised even higher. He said: "In the next parliament we want to go even further, so that someone working full-time on the minimum wage pays no income tax at all and those on low and middle incomes receive further big tax cuts.""The LibDems are the only party that will radically cut taxes for people on low and middle incomes that will build a stronger economy and a fairer society so that everyone can get on in life."Raising the allowance to £12,5000 would allow more than one million extra workers to avoid paying any tax at all, calculations suggest. Each would save almost £600 a year.Mr Alexander's comments came as the Tory Communities Secretary Eric Pickles attacked LibDem tax plans, saying they were at odds with the priorities of his party. Asked about the LibDem policy of a mansion tax, also adopted by Labour last week, Mr Pickles said: "Their homes tax would hit hardworking families hardest – with ordinary people running the risk of seeing a £320 hike in their council tax. Conservative priorities are completely different."From April the tax-free allowance will be raised to £9205. The idea of raising the level to £12,500 was backed by the LibDem spring conference in Gateshead last year, but has yet to be formally announced as a manifesto commitment for 2015.

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Alexander backs higher tax-free allowance

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