Labour tax plans leave people £340 worse off

April 6, 2015 6:24 PM
Originally published by UK Liberal Democrats

Labour tax plans would leave 24m taxpayers £340 out of pocket, new research has shown.

By contrast the Liberal Democrats delivered on a promise to increase the tax threshold to £10,600 - giving 27 million people a £825 tax cut. We will raise it again to £12,500, putting an extra £380 in people's pockets.

Liberal Democrat analysis has shown that Labour's proposed 10p rate band will only offer taxpayers a measly £37 tax cut compared to the Liberal Democrat commitment to cut income tax by almost £400 in the next parliament.

When Labour were in government they made every working family in the country worse off by crashing the economy. Now to ad insult to injury, their tax proposals would leave people worse off under Labour than the Liberal Democrats.

Commenting on Labour's tax plans, Deputy Prime Minister and Leader of the Liberal Democrats Nick Clegg said:

"In government, we secured a tax cut totalling £825 every year for millions of ordinary working people.

"We now plan to take this further, raising the threshold to £12,500 and giving millions of people a further tax cut worth nearly £400.

"Labour's short-term economic plan will lead to mounting borrowing and leave taxpayers short by hundreds of pounds, which is unfair and reckless.

"Ed Balls and Ed Miliband's tax plans are economically illiterate. Labour has already failed to commit the £8bn needed for the NHS, and are now failing to give taxpayers the tax cut they deserve."