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Fairer Tax – How it is affecting us in Bury

by prestwichfocus on 19 February, 2013

From the start of April 2013, people who pay income tax will see a further reduction in income tax levels, bringing the total tax cut to £600 a year since Liberal Democrats joined the Coalition Government.

This is through raising the ‘threshold’ – the amount of income that people can earn BEFORE pay tax to £9,440 a year – this is a tax cur of £600 a year for more than 20 million people across the country.

In Bury this means that 73,900 people have had a tax cut of £600 (about 4,400 people in Holyrood Ward alone).

In Bury 5,830 lower earners will have been taken out of having to pay income tax all-together.

Amazingly across Bury this means that £44,330,000 less income tax is being paid as a result of these changes.

Liberal Democrats believe very strongly in fairer taxes, which is why we made raising the tax-free allowance our number one priority at the General Election – so important that we put it on the front page of our manifesto. Times are tough, with rising bills and wages not keeping pace with inflation, so we want to give people real, practical help. Cutting Income Tax will not deal with all of those problems, but it will help.

Key facts and figures:
In 2013, someone working full time on the minimum wage will see their Income Tax bill cut in half compared to what they were paying under the last Labour Government.

By April more than 2m low-income workers out of paying tax altogether. The majority will be women.

Liberal Democrats aim to increase the amount of money you can earn tax-free to £10,000 by 2015, which would be a total tax cut of £700 a year for most people. Beyond that, we want to increase the tax-free allowance further until it reaches the same level as the Minimum Wage.

Under the last Labour Government, someone on the Minimum Wage paid £1,000 in Income Tax. We have cut their tax bill in half and under our future plans, they would pay nothing.

More information on the Liberal Democrats campaign for Fairer Tax here.


2 Responses

  1. RayM says:

    Any stats on how many people in the Bury area don’t fall into the minimum wage band that these figures represent?

    I am all for good changes but for someone like me on the border of the now reduced higher tax band this all feels like PR headlines without anything good at the end of it, for me anyway and I wouldn’t consider myself rich or even well off.

    it’s a shame. I like how you communicate with us etc but I don’t see policies from any of the parties that make me think it’s much more than a headline. Locally however I am a fan of your work so perhaps we stick to that?

    • timpickstone says:


      Thanks for your comments.

      You are right that this raising of the threshold particularly benefits people on the standard ‘lower’ rate of Income Tax – particularly beneficial for people on lower wages / part time / people on some pensions. As you say the higher rate now starts a bit lower, with people (like me) who don’t consider ourselves to be well off.

      Thanks for your comments. Tim

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