Look at your pay packet, go on. You might be surprised to see that you have £22.25 more to spend this month than you did last. If you look back at your pay packet for April 2010 you may find that once you adjust for any meager salary increase you may have received you are actually £48.75 a month better off.
The Liberal Democrats, in Government, are delivering on our pledge to increase the basic Income Tax Threshold to £10,ooo.
If you are earning more than £9,440 a year you are now taking home £48.75 more of your earnings a month than you were under Labour. That’s equal to £585 a year out of the Government’s pocket and into yours. Next year that will increase to £58.75 a month or £705 a year.
In Manchester alone, that means that some £80 million has been returned to the pockets of some of the poorest paid workers in the country.
That, however, is not all that you are getting back in tax relief. The Liberal Democrats in Government have delivered the end of the Fuel-Price Escalator on Petrol. If Labour had been in Government, continuing its policy of increasing petrol and diesel prices by 6% a year, then the price of a gallon of Unleaded 95 petrol today would be £1.19 more expensive. That is a further £1.19 a gallon in your pocket rather than the Government’s.
That reduction in petrol prices keeps down not only the cost of driving, but also the cost of traveling on buses or in taxis. Most importantly it keeps down the cost of shipping food around the country, and therefore the cost of food itself. Under a Labour Government we would now be paying nearly 20% more for petrol, food and other goods and services.
Liberal Democrats, in Government are keeping down the costs of fuel for driving, and delivering food and other goods and services by around 20%.
Then there is the Council Tax; for the last two years the Liberal Democrats in Government secured a freeze in your council tax by paying Manchester City Council not to increase the tax. This year the Council did not accept that Government funding and increased the Council Tax by 3.7%.
The Liberal Democrats in Government have kept the council tax in Manchester down by 5.06% and if we had a Lib Dem Council that saving would have been 8.9% since 2010. That is a saving of 9p in the pound on your Council Tax. Labour have increased the council tax by 3.7p in the pound, and would have increased it by the full 8.9p in the pound were it not for the Liberal Democrats in Government.
A household paying the full Band A Council Tax (the lowest band) would pay at least £964.00, that’s £ 79.00 a year more.
The Liberal Democrats in Government have kept the lowest Council Tax payments in Manchester down to at least £79.00 a year less than it would have been under Labour.
Assuming that Labour increase the Council Tax again next year and the year after by the same 3.7% then by the end of this Government the lowest paid to average paid workers in Manchester will be better off with the Liberal Democrats in Government.
- Income Tax Saving = £ 705 a year
- Council Tax Saving = £ 107 a year
- Petrol Saving = £ 990 a year (assumes you fill a 16 gallon tank every week)