Of these measures, Clegg said he "insisted" on the second, "conceded" on the first, but that he stood by the package as a whole.
"There can be no question of reducing [the 45p rate] further within this parliament," Clegg said. He also said the existing 45p tax rate was still higher than at any time throughout Labour's years in power. Clegg again said the party would not sanction further spending cuts without a wealth tax on rich people. "All parties will need to acknowledge that belt-tightening is needed... but we'll start with the richest and work our way down," he said.
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MARRIED COUPLES WILL NOT GET TAX BREAK BEFORE 2015
31 October 2012
A cabinet minister has warned that married couples should not expect a promised tax break in the form of a transferable tax allowance, before the next election.
The Telegraph has reported that in an interview with them, Kenneth Clarke, conservative MP, indicated that he had revised his opinion that Britain’s economy would recover to a normal state by 2013 or 2014, saying that a “long hard road” still lay ahead and years’ more austerity might be needed. Asked whether this meant that tax handouts – such as the reintroduction of the married tax allowance – would be impossible to deliver, He replied: “We never committed ourselves to married couples’ tax by the end of the parliament.” When reminded that the Chancellor had made the commitment in the Conservative manifesto, Mr Clarke laughed and said: “I’m married, I’m not counting on it. I don’t remember anyone promising that kind of thing.”
The Conservatives fought the 2010 election promising millions of married couples a transferable tax allowance.
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MPS CALL FOR A RISE IN 40P TAX THRESHOLD
31 October 2012
Conservative backbench MPs are calling for the 40p tax threshold to be raised to £50,000 with future increases in the limit linked to wages.
Moneymarketing reported that Tory MPs Kwasi Kwarteng and Priti Patel have published a report, ‘Motivating the Middle’, warning of the impact of fiscal drag caused by the previous and present government’s income tax policies on middle earners. The 40p tax threshold is set to fall to £41,450 next April, from its current £42,475 level, which will result in higher-rate taxpayers not benefiting from an increase in the personal allowance from £8,105 to £9,205. Speaking to the Mail on Sunday , Kwarteng said: “When Lloyd George brought in his ‘supertax’ in 1909, it was only paid by those on around the equivalent of £500,000 a year. Now the higher rate of 40 per cent income tax is increasingly paid by those in the middle class.
CIPP Policy News Journal
12/04/2013, Page 171 of 362
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