Chancellor George Osborne is expected to announce what he says is “the biggest reduction of business and personal tax in two decades.”
As the tax changes announced in the 2014 Budget take effect, Osborne will highlight the stability and confidence that he believes are returning to the economy.
In this speech in Essex, he will also signal measures geared towards the unemployed, which will encourage people to seek work, including a scheme requiring the long-term jobless to carry out tasks for their benefits.
With April brings a new financial year, and the amount of money people will be able to earn before they begin to be taxed will rise to £10,000. Corporation tax is also being reduce to 21%, alongside cuts to employer’s National Insurance contributions and changes to business rates.
The Chancellor believes the tax cuts are the “biggest for a generation” but although he says employment is growing three times faster than any recovery on record, he will also say “it’s no good creating jobs if we’re also paying people to stay on welfare.”
Mr Osborne will say:
“This week, we follow the new way, our way. Backing businesses by cutting their taxes so they can create jobs, cutting the tax on hard-working people so their job pays, and holding back welfare rises and imposing more conditions on those claiming the dole, so that getting a job pays more.”
However, shadow treasury chief secretary Chris Leslie told the BBC that working people were faced with a “cost of living crisis” and that George Osborne was “giving with one hand but taking away much more with the other”.
“While millionaires have been given a huge tax cut, millions of hard-working people have seen their taxes go up.
“There have been 24 Tory tax rises, including the VAT hike which has cost families with children an average of £1,350 over the last three years.
“Labour would deal with the cost-of-living crisis by freezing energy bills, cutting business rates for small firms and expanding free childcare for working parents.”
Photo by altogetherfool