Policies add £5,500 to tax bills for couples

Analysis shows that a couple earning average wages will pay more than £5,500 in additional tax over the next decade due to the 1.25% National Insurance increase and the income tax personal allowance threshold being frozen. According to the Commons library research, commissioned by the Liberal Democrats, two median earners on a combined salary of about £72,000 per year would pay about £5,550 extra in tax directly arising from the policies over the next ten years. This breaks down to a £3,250 tax hike from the freezing of income tax thresholds and another £2,300 hit from the National Insurance increase. The calculations assume that Chancellor Rishi Sunak will cut the basic rate of income tax from 20p to 19p in 2024, as he vowed to do during the March budget. Lib Dem leader Ed Davey said the analysis shows that “there is no light at the end of the tunnel under this Conservative government, just years of painful tax rises.” He added: “Now is not the time to be hiking people’s taxes, just as energy bills and inflation go through the roof. People are facing a cost-of-living emergency, and they need an emergency tax cut now.” A Government spokesman said ministers “understand that people are struggling with rising prices, and while we can’t shield everyone from the global challenges we face, we’re supporting British families to navigate the months ahead with a £22bn package of support this financial year.”

The Sunday Telegraph

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