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220,000 low earners lifted out of income tax is huge boost for West Midlands region - Phil Bennion MEP

March 20, 2013 7:10 PM
Budget

The Lib Dem's top election pledge to raise the income tax threshold to £10,000 has been delivered.

Lib Dem MEP Phil Bennion has hailed budget news that another 220,000 people will be taken out of income tax and changes to help business as a much needed boost for the West Midlands region.
Phil Bennion said: "There is a clear Lib Dem stamp on this budget - help for business and tax cuts for the low paid.
"Raising the income tax allowance was a policy I championed for years on the party's policy committee. It is good news that Vince Cable and Nick Clegg pushed for this to be made a priority and now our top manifesto pledge will be delivered a year earlier than planned.

"2 million of my constituents in the West Midlands region will get a £700 tax cut compared to 2010 when Labour were in power. Those on low pay are getting the benefit with 220,000 people taken out of tax altogether."
"The number of people being taken out of tax in Shropshire county council area is 14,550, in Telford it is 9,750.
"224,948 families in the West Midlands region could benefit from tax free childcare and 70,000 businesses will benefit from the changes to National Insurance, creating and preserving jobs.
"A typical motorist will save £7 per tank of petrol compared to Labour's plans and I am working in the EU to increase those savings by making sure new cars use less fuel.
"I also welcome the good news for the 4,972 community pubs in this region set to benefit from the cut in beer duty.
"The Liberal Democrats are trying to build a stronger economy and a fairer society and this budget shows our influence in the coalition government."
The MEP also welcomed news that the climate change levy will not apply to the ceramics industry. The move follows heavy cross party lobbying in recent weeks, including a meeting between Phil and Vince Cable's advisors at the Business Department in London last Friday.
Phil Bennion added: "This budget recognises the unique position of ceramics manufacturers whose kilns inescapably use a lot of energy. Instead of encouraging greener manufacturing processes, which is the intention behind the climate change levy, the effect would have been to drive ceramics manufacture out of Britain and the EU entirely without any carbon reduction. I am glad the Chancellor has listened to our case and acted to safeguard thousands of jobs."
ENDS
Notes: Impact of the Budget in the West Midlands Region and local council areas within it
Stronger Economy:
National Insurance: £2,000 Employment Allowance - The Coalition will introduce an allowance of £2000 per year for all businesses and charities to be offset against their employer NICs bill from April 2014. Employers will be able to hire one extra person on £22,400 a year, or four people working full time on the minimum wage, without paying any National Insurance.It means 450,000 small businesses, one third of all employers, will pay no jobs tax at all.
Effect in West MIdlands: 70,000 businesses will benefit, with 35,000 of these taken out of employer NICs altogether.
Pubs in this region benefiting from the beer duty cut · 4,972
Fairer Society:
Income Tax changes
· People lifted out of Income Tax from April 2014: 220,000 in the West Midlands region
· People getting a £700 tax cut compared to 2010: 2.0m
Area: Removed from Tax: Tax cut:
West Midlands
220,000
2,030,000
Herefordshire, County of UA
8,270
66,000
Stoke-on-Trent UA
10,760
91,900
Telford and Wrekin UA
9,750
71,600
Shropshire UA
14,550
111,500
Staffordshire
33,600
337,000
Cannock Chase
3,950
35,400
East Staffordshire
5,390
47,600
Lichfield
3,260
39,200
Newcastle-under-Lyme
5,360
51,500
South Staffordshire
4,590
45,900
Stafford
4,220
48,200
Staffordshire Moorlands
3,700
38,300
Tamworth
3,140
31,000
Warwickshire
22,050
227,700
North Warwickshire
2,480
25,200
Nuneaton and Bedworth
5,540
52,500
Rugby
3,940
44,300
Stratford-on-Avon
4,720
47,100
Warwick
5,360
58,700
West Midlands MC
95,720
903,300
Birmingham
30,750
311,000
Coventry
11,800
118,600
Dudley
13,960
128,400
Sandwell
11,530
99,600
Solihull
7,950
75,800
Walsall
10,470
88,800
Wolverhampton
9,260
81,000
Worcestershire
25,320
220,900
Bromsgrove
4,210
41,400
Malvern Hills
2,690
21,900
Redditch
5,410
35,300
Worcester
3,790
44,800
Wychavon
4,330
45,400
Wyre Forest
4,990
32,100
Tax Free Childcare The Coalition will provide £750m a year to help support working families with 20 per cent of childcare costs, for children under 12, up to a limit of £6,000 (in total cost) for each child per year
  • Approximate number of eligible families in the West Midlands: 224,948
Fuel duty
· Number of vehicles benefiting from fuel duty freeze: 3.5m
· Typical motorist will save at least £7 per tank compared to Labour's plans