Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Ian Swales Excerpts
Tuesday 28th January 2014

(10 years, 9 months ago)

Commons Chamber
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Danny Alexander Portrait Danny Alexander
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I would prefer it if those resources were used to fund further increases in the personal allowance. However, the hon. Gentleman should welcome the fact that the Government are saving thousands of people in his constituency £700 a year in income tax that they would be paying if his party had stayed in office.

Ian Swales Portrait Ian Swales (Redcar) (LD)
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Raising the income tax threshold to £10,000 is putting more money into the pockets of the low-paid, and their spending is helping to drive the recovery. Will the Chief Secretary consider increasing the threshold to £10,500 in the forthcoming Budget?

Danny Alexander Portrait Danny Alexander
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My hon. Friend is right to say that this policy is helping people on low incomes, as well as working people up and down the country, many of whom have household budgets that are under pressure. I would like the income tax personal allowance to be higher. As a party, we have set the goal of a £12,500 personal allowance in the next Parliament. In the same way, the £10,000 goal for this Parliament was set by the Liberal Democrats.