David Cameron has today (1 October) pledged to slash income tax for the lowest paid citizens in the country, whilst also increasing the 40 per cent income tax barrier on middle earners to £50,000.
Speaking today at the Conservative Party Conference held in Birmingham, he said that the future Conservative government would raise the tax free personal allowance from £10,500 to £12,500 by 2020.
Mr Cameron said he wanted those employed to take home more of their money. For this to be achieved, Mr Cameron said it was necessary to get rid of the deficit that the country currently holds.
He also outlined plans to raise the threshold for the 40p income tax rate from £41,900 to £50,000 by the end of a five year Conservative government, according to the BBC.
Mr Cameron said: “Our commitment to you for the next five years we want to cut more of your taxes but we can only do that if we keep on cutting the deficit - this is common sense - tax cuts need to be paid for.
“So here’s our plan – we are going to balance the books by 2018 and start putting aside money for the future – to do it well need to find £25bn of savings in the first two years of the next parliament.
“That is a lot of money but it is doable – £25bn is actually just 3 per cent of what government spends each year. It’s one quarter of the savings that we found in this parliament, so I’m confident that we will find the savings we need through spending cuts alone.
“We will see the job through and we will get back into the black but as we do that I’m clear about something else – we need tax cuts for hard working people.”
Later in his speech, Cameron noted the minimum wage increases that have already been made and will continue to take place.
Mr Cameron continued: “Here and now I have a specific commitment. Today, right here today, the minimum wage reaches £6.50 an hour and before long we will reach our next goal of £7.00 an hour.”
The minimum wage announcement follows a pledge by Labour leader Ed Miliband that he would seek to lift the minimum wage to £8 per hour.
Mr Cameron said: “I can tell you now that a future Conservative government will raise the tax free personal allowance from £10,500 to £12,500.
“That will take 1m more of the lowest paid workers out of income tax and it will give a tax cut to 30m more - so with us if you work 30 hours a week on minimum wage you will pay no income tax at all - nothing, zero, zilch.”
