Clegg pledges to raise tax threshold

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DEPUTY Prime Minister Nick Clegg is pushing for the introduction of a £10,000 earnings threshold before people start paying income tax – as soon as possible.

The move would reduce the tax bill of millions of Britain’s lowest-paid workers and help struggling families.

Currently, people pay income tax on earnings above £7,475, rising to £8,105 from April.

The Liberal Democrat MP for Sheffield Hallam made the pledge at an event in London held by the Resolution Foundation, a think tank which examines impact of political decisions on families.

He said: “The UK’s tax system cannot go on like this. With those at the top claiming the reliefs, enjoying allowances, paying other people to find loopholes while everyone else pays through the nose.

“Our priority in Government – from the front cover of the Liberal Democrat manifesto to the pages of the Coalition agreement – is freeing the lowest-paid from income tax altogether and cutting income tax for millions of ordinary workers.

“I want the coalition to go further and faster in delivering the full £10,000 allowance because the pressure on family finances is reaching boiling point.

“Delivering the £10,000 personal allowance more quickly will need to be fully funded. We cannot just cut taxes by raising borrowing – that is just extra taxation deferred.

“So we need to find the money. That will not be easy, of course, but to those who say: ‘We cannot afford to do this, I say: ‘We cannot afford not to do this’.”