» Friday, February 4, 2011


Asked if the Prime Minister agreed with the comments made by the Deputy Prime Minister that people on higher rates of tax would not notice any increases, the PMS replied that there had been an increase in the personal allowance at the time of the last Budget. There had also been a balancing reduction in the higher rate threshold which meant that people at the higher rate would not benefit from the increase in the personal allowance. So this was an offsetting measure.

Put that the Deputy Prime Minister had suggested that that would continue, the PMS said that the Coalition Agreement had set out that it was the Government’s policy to prioritise increases in the personal allowance above other personal tax cuts. Put that the Coalition Agreement did not set out how those measures would be funded, the PMS said that those decisions would be taken in future Budgets.

Put that the Deputy Prime Minister seemed to suggest that to pay for lower income tax cuts, there would be further squeezes’ on higher earners, the PMS said that the Deputy Prime Minister was making the point that we had this priority, but equally, we had the priority of bringing down the deficit, so we would have to look at future Budget decisions in that context.

original source.

Briefing took place at 10:00 | Search for related news

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