Budget 2012: What it means for the North West

Chris Davies MEP

As part of the Budget, the Chancellor has announced that from next year, the Income Tax threshold will be raised further, ensuring that no one pays any income tax on the first £9,200 they earn.

In North West England that means 230,000 will be lifted out of paying Income Tax all together and a further 2.5 million will receive a £220 tax cut. This is on top of tax cuts of £200 last year and a further £130 next month.

Video Games Tax Relief will also benefit significant industries in both Liverpool and Manchester while rail electrification projects will benefit both Greater Manchester and Lancashire.

Cumbria will benefit from funding through rural growth networks and also through an investment in improving mobile phone reception on the A591.

Chris Davies MEP said: “The Chancellor has done the right thing in listening to Liberal Democrat calls for the Income Tax threshold to be raised further.

“As a Liberal Democrat, I want to see a fairer tax system where help is provided for those who need it most and where the richest pay their fair share.

“Raising the Income Tax threshold to £9,205 will help average working people in Rochdale who have been struggling with bills and higher cost of living.”

“The infrastructure investment in the North West announced today will benefit thousands of my constituents and help economic growth in the region.”

“None of this would be possible without the Liberal Democrats in Government.”

Liberal Democrat Chief Secretary to the Treasury, Danny Alexander said: “Liberal Democrats have been clear in our priorities for the Budget. We wanted to see a Budget for the millions, not the millionaires.

“The Coalition Government inherited an unfair tax system from Labour, who in their 13 years hit ordinary working families hardest by abolishing the 10p tax rate while letting tycoons get away with shameless tax avoidance.

“Liberal Democrats in the Coalition Government are doing the right thing to clear up the mess Labour left behind, making sure the wealthiest pay their fair share by clamping down on tax avoidance, introducing a ‘tycoon tax’ and putting an end to stamp duty dodging by the super rich.

“Raising the Income Tax threshold is a key Liberal Democrat commitment that the Coalition Government is implementing. The announcement in the Budget will mean almost 2m people will be taken out of paying Income Tax all together in the UK and give nearly 21m people a £220 tax cut.”