PORTSMOUTH South MP Mike Hancock has welcomed a measure which will lift thousands of people in our area out of paying income tax.
Yesterday, the coalition government raised the income tax threshold, the level of earnings at which people have to pay tax, by £1,000, to £7,475.
The policy, part of a Lib Dem initiative to raise the threshold to £10,000, means 13,600 people in our area no longer pay income tax, and a further 298,000 will be around £200 per year better off.
Lib Dem MP Mr Hancock said: ‘This tax cut will help millions of people. In Portsmouth 68,000 will get an extra £200 to spend this year and this will make a real difference.
‘I am proud that thanks to Liberal Democrats in government, almost a million people will be lifted out of paying tax altogether across the country, while 23 million people will get a tax cut. One way we are paying for this is by taxing the banks more, £10bn more, so they pay their share.’
In Portsmouth, 3,700 people now don’t have to pay income tax, while 68,000 will pay £200 less per year.
In East Hampshire, 1,700 pay no tax, and 47,000 pay £200 less, while in Fareham 2,100 are below the threshold, and 52,000 are better off.
In Gosport 1,800 won’t pay, and 35,000 will pay less, while 2,200 in Havant won’t pay income tax, with 54,000 paying £200 less. And in Chichester, 2,100 do not have to pay any income tax, while 42,000 will pay £200 less per year.