Tax cut for half a million South Yorkshire workers

Liberal Democrat councillors and supporters in Sheffield publicising changes to the tax system.
Liberal Democrat councillors and supporters in Sheffield publicising changes to the tax system.
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ALMOST half a million people across South Yorkshire will receive a £600 income tax cut from April and 50,000 of the lowest-paid will pay nothing at all.

The figures were revealed by Deputy Prime Minister and Sheffield Hallam MP Nick Clegg in response to a report by Sheffield Fairness Commission, which calls for action to tackle poverty.

Liberal Democrat councillors and supporters in Sheffield publicising how the party has made Britain's tax system fairer.'Pictured are Angela Hill, Coun Andrew Sangar, Cliff Woodcraft, Richard Shaw, Jan White and Coun Sue Alston.

Liberal Democrat councillors and supporters in Sheffield publicising how the party has made Britain's tax system fairer.'Pictured are Angela Hill, Coun Andrew Sangar, Cliff Woodcraft, Richard Shaw, Jan White and Coun Sue Alston.

In total, 471,600 people in South Yorkshire will pay £600 less.

The change also means a total of 52,910 people have become exempt after the income tax threshold rises to £9,440.

In Sheffield, 188,000 people stand to receive the tax cut with 18,880 exempt.

Mr Clegg said: “The increase in the personal tax allowance is the biggest giveaway for a long time and is one of the ways in which we aim to help tackle poverty.

Fairer tax: Deputy Prime Minister Nick Clegg

Fairer tax: Deputy Prime Minister Nick Clegg

“Under Labour, tax credits were brought in where money was taken off people then paid back to them – whereas we are letting them keep the money to start with.

“The change will help hard-working people on low and middle incomes, who are being hit by higher food, energy and fuel bills.”

The Fairness Commission is calling for a living wage of £7.45 an hour but Mr Clegg said the increased income tax threshold will act in a similar way by boosting net pay.

He added: “I think a lot of the ideas the Fairness Commission has come up with are very important to tackle matters such as the gap in life expectancy between different areas.

“Our approach includes paying the Pupil Premium to schools, for each pupil from a low income background and bringing in the biggest-ever increase in the state pension to £147 will help.”

Lib Dem councillors and supporters have been leafleting residents around Sheffield to let them know about the tax cut.

Sheffield Fairness Commission is calling for a city-wide living wage of £7.45 per hour, a 20mph speed limit on residential roads, efforts to tackle the ‘root causes’ of ill health, fair access to benefits and credit to all in need, better crime prevention planning and help for young carers.