Raising the amount we earn before we start paying any tax is a key Lib Dem policy. The changes we have made in government mean our kids now don’t pay tax until they earn £10,000. After April this year, it will be £10,500. By the time the election hits, it will mean people hardest hit by austerity have had a cushion of £800 a year to help cope. Indeed, the idea of taking the worst off in society out of tax is so reasonable, logical and popular it’s been taken up by all the major parties for their 2015 manifestos.
But where did the idea come from? Let me tell you a story ….
ELIZABETH JEWKES is the woman you need to thank. Elizabeth was the parliamentary candidate in Chester, in 2009. She felt that the government of the time (Labour) should have been supporting working people more. Her local party reports what Elizabeth said at the time as follows:
” ‘No one who only earns the Minimum Wage should be paying income tax’ she says. ‘The government recognises that people cannot live on the Minimum Wage. So we have the nonsense of the government taking taxes from people, only to give some of it back in the form of Working Tax Credits. Wouldn’t it make more sense to allow people to keep more of their hard earned wages? If the Income Tax threshold was raised to £11,174 then every adult who works full time would be £20 a week better off. Putting £1,000 a year back into the pockets of working people and helping to improve their quality of life.’ ”
Elizabeth discussed the idea with Vince Cable when he visited Manchester in the October of 2008 and he agreed it was excellent idea. With support from Vince and Jo Swinson, MP, Elizabeth presented her policy suggestion at the Lib Dem policy conference at the London School of Economics the following January, where it received an enthusiastic reception.
The idea was adopted by the Lib Dems at the Conference in Bournemouth in 2009. And then, we had the chance to deliver the policy in government …
The result of the change is that 3 million people across the UK have been taken out of tax since 2010. When we arrived in government the tax threshold for most people was £6,475. After April 2015 no one will pay any tax until they earn £10,500. Not bad, eh?
Personally, I am glad that when times have been so hard we’ve been able to offer this little help to lower earners. Middle income earners also benefit. In West Berkshire, by the time the election hits, ~45,000 people will have benefited from Elizabeth Jewkes’ good idea.
This is Lib Dem Values in action.
This story goes to show that party members can shape and influence the party’s direction. If you have good, liberal ideas I’d like to hear. If you’re not already a member, you can join us here.
The original story from Chester Lib Dems: http://chesterlibdems.org.uk/2009/02/04/elizabeth-jewkes-calls-for-lower-taxes-for-the-low-paid/
Caron Lindsey’s report in Lib Dem voice: http://www.libdemvoice.org/why-its-worth-being-a-member-of-the-liberal-democrats-33779.html