Prime Minister Cameron brought the Conservative conference to an end with a speech where he announced further increases in the tax-free personal allowance and tax cuts for a purported 30m people.
By 2020, if elected in May next year, Cameron said the personal allowance would be £12,500 compared to the £10,000 it is now. This would take 1m of the country’s lowest paid out of the income tax bracket.
Along with that, the Prime Minister also said that the threshold for the 40p income tax would go up to £50,000 from £41,900 after a further five year Conservative term. He has claimed this will support people who “do the right thing”.
There are concerns in some quarters that the Tories are giving tax cuts to the rich while cutting benefits to the poor. During the conference, the Chancellor announced a two year freeze on benefits and tax credits, affecting around 10m people.
Along with that, Cameron has not explained how the tax cuts will be paid for, although the benefits and tax credits freeze will go some way to do that. It is likely that an attempt will be made to recoup this loss by cutting government budgets with Osborne saying he wants £25bn sheared off within two year of being elected.
Cameron also announced that a Conservative government would protect the NHS budget, a strong stance on confronting ISIS, and a scrapping of the Human Rights Act.
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