David Cameron promises sweeping tax reforms
During a well-received speech at the Conservative Party conference in Birmingham, David Cameron has promised a personal income tax allowance for £12,500, and to raise the 40p tax threshold to £50,000.
The Prime Minister said that the move would mean that most minimum wage workers would pay no tax whatsoever. Some 30 million taxpayers would also benefit from the move, which would address inflation and stop senior public sector workers from being hit with the upper rate of tax.
But there are fears that such a policy could cost the government £7 billion, and this would affect public services, especially when brought into tandem with the additional cuts planned.
Mr Cameron insisted there “must be cuts for hard-working people”.
He also said: “Let the message go out that under the Conservatives, if you work hard and do the right thing, we say you should keep all of your own money to spend as you choose.”