Downing Street Says

» Thursday, March 25, 2010

Budget

Put that freezing tax allowance amounted to an increase in tax, the PMS said, he couldn’t add to what the Chancellor had already set out. He said that the important thing to bear in mind was that personal tax allowances are fixed every September and that it depends on what the rate of inflation is. The rate of inflation last September was negative so it was entirely possible that if the Chancellor had wanted to he could have reduced personal allowances, but he didn’t. He said if the Chancellor had increased them it would have cost 2bn.

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Budget

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