Does Harborough's MP want to raise taxes on low incomes?

November 15, 2018 1:06 PM
Budget Box

The Conservative budget gave big tax cuts to higher earners

Harborough's Conservative MP may want to stealthily raise taxes on the lowest earners. Almost a year ago he asked a parliamentary question about freezing thresholds for the basic and higher rate income tax bands and tweeted about it a few months later.

Since 2010, the Liberal Democrats have taken millions of low earners out of income tax altogether. This means that each person can now earn £11,850 before they pay tax.

Freezing the basic rate threshold would mean everyone paying extra tax, even low earners.

The threshold should go up at least in line with inflation. This stops more low earners becoming income tax payers just because they get a cost of living increase in their wages.

In the recent budget, the Conservatives gave a tax cut to higher earners by raising the higher rate threshold. At a time when cuts to benefits and services mean we have more homelessness and poverty, this is deeply irresponsible.

"Having increased (tax thresholds) frm £6,475 in 2010 to £12,500 in 2020/21- a 2 yr pause would raise about £4bn p/a" - Conservative MP for Harborough, Neil O'Brien, 18th June 2018

If true, our MP's plan would make this even worse by ensuring more people on low incomes pay income tax.