Legislation will be brought forward to ensure people working 30 hours a week on the national minimum wage do not pay income tax. Discussing the speech during the BBC’s coverage, employment minister Priti Patel said her party’s main concern was ?supporting people? and ?getting people back into work ? that’s the bread and butter?.Patel said the Conservatives recognised that these were ?the issues that matter to the public, and that’s where our focus will be?. Labour’s Emma Reynolds ? who recently announced her backing of Liz Kendall’s leadership bid ? said the key question still remaining was whether the government could make progress on economic recovery reaching ?the kitchen table and the pockets of people on lower incomes?. She added that Britain needed an ?economic recovery that delivers for all.? As well as serving to help low earners, the measure also serves as an anti-fiscal drag law?as The Guardian pointed out, which could benefit high earners too. The Conservatives’ briefing on the subject said this law will be applied from the first budget following the general election. ?The change…will mean that the personal allowance will automatically be uprated each year in line with the minimum wage, rather than just inflation, meaning the personal allowance will increase more quickly,? it outlined. The Financial Times reported economists’ criticism?of David Cameron’s commitment to preventing tax rises in income tax, VAT and national insurance, which also formed part of the Queen’s speech. Michael Saunders of Citi said the pledges undermined Britain’s ?fiscal credibility? as ?you want the ability to raise taxes if your most important objective is to eliminate the deficit?. Read more on the new government:
- Sajid Javid backs his intent to help SMEs by unveiling own family business history
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- The most important new tax changes for businesses during 2015
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