Hull MP welcomes new tax break for hard-working families

Hull North MP Diana Johnson today welcomed new tax cuts for low-paid and middle income workers in Hull.

In changes announced by the Chancellor of the Exchequer in the House of Commons today (13 May), the personal income tax allowance was raised by £600 to £6035. This will benefit all basic rate taxpayers under 65.

The change in the personal allowance will be backdated to 6 April. It will result in a one-off increase of £60 in the monthly income of basic rate tax-payers in September - and then £10 per month for the rest of the financial year.

22 million people on low and average incomes will gain an extra £120 this year from this tax cut and 600,000 more of the lowest paid will be taken out of tax altogether.

Diana Johnson MP said: "With global economic problems feeding through to higher prices, especially for fuel and food, I am pleased that the Chancellor has given a new boost for hard-working Hull families.

"These changes will assist the particular groups of low paid workers who could have been adversely affected by the recent simplification of the income tax system especially those without children and pensioners between 60 and 64.

"These changes that take 600,000 more people out of tax altogether come on top of the 2p cut in the basic rate of income tax to 20p - the lowest rate in 75 years - and the increases in Working Tax Credit, Child Tax Credit and Child Benefit that the Chancellor announced in the March Budget.

"These latest measures and other Labour reforms helping low paid workers and pensioners, such as the national minimum wage and the Winter Fuel Allowance, have been opposed by the Tories and Lib Dems. This even included opposing the 10p tax band itself!

"I am also pleased that there will be further Labour action to benefit low paid workers, helping to make work pay, later this year."

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