Posts Tagged ‘United Kingdom’
Conservatives will Recognise marriage in the tax system
A Conservative Government will introduce a recognition of marriage and civil partnerships in the tax system.
“This is sending a signal that we understanding the value of commitment”, said David Willetts.
“Britain is unique in the raw deal one earner couples get”, he added. Most European countries recognise marriage in the tax system.
The proposed recognition will take the form of a partially transferable personal allowance for all married couples and civil partnerships.
- One member of an eligible couple will be able to transfer £750 of their tax free personal allowance to their partner in order to reduce their partner’s income tax bill. This will be limited to basic rate taxpayers and is therefore worth up to £150 a year per couple at the 20% rate of tax. In 1999, its final year before it was abolished for all but pensioner couples, the Married Couples Allowance was worth £197 per couple per year.
- The additional transferable allowance will be tapered away at incomes above £42,500 so that no higher rate taxpayer earning £44,000 or more will benefit.
- Eligible couples where one partner is not using all of their tax free personal allowance and the other earns between £6,600 and £44,000 will be up to £150 a year better off.
- The full benefit of £150 goes to eligible couples where the main earner earns between £7,300 and £42,500.
The independent Institute for Fiscal Studies estimate that this will cost about £550 million. This will be paid for using some of the revenues from a levy on banks that will raise more than £1 billion. The remaining revenues will be used to reduce the deficit.
This is a progressive tax measure, with two thirds of the benefits going to families in the lower half of the income distribution. The biggest gains as a percentage of income go to households in the third decile of the income distribution. 4 million out of a total 12.3 million married couples will benefit.
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Conservatives – Three strikes policy to crack down on benefit fraud
Shadow Work and Pensions Secretary Theresa May has announced a new ‘three strikes’ policy to crack down on those who repeatedly defraud the benefits system.
This comes as new analysis reveals that under Labour benefit overpayments due to fraud and error have cost £80 a second since 1997.
“For too long Labour have let benefit cheats play the system, costing the taxpayer millions”, May said.
“It is astounding that since 1997 welfare waste has cost the public £80 every second”.
- In total, Labour have wasted over £30 billion on fraud and error between 1997-98 and 2008-09. £14 billion of that has been wasted on benefit fraud.
- The Department for Work and Pensions has had its accounts qualified for the last 20 years due to the high level of fraud and error in the benefits system
- Between 2004-05 and 2008-09, only 143,838 people have been sanctioned for benefit fraud
The Conservatives have announced new plans to introduce tougher benefit sanctions for those found guilty of benefit fraud. This is about targeting the minority of those who are undermining the integrity of the benefits system.
Those who commit benefit fraud once will lose their out-of-work benefits for three months, a second offence will attract a benefit sanction of six months, and if someone commits fraud three times they face losing their out-of-work benefits for up to three years.
This is a big increase in the penalty, from the current situation where fraudulent claimants lose a maximum of 13 weeks benefit entitlement.
May said the Conservatives will “send out a strong message to people who fleece the taxpayer- you could lose your out of work benefits for three years”.
“This is about fairness. While the whole country is tightening its belt it’s scandalous that thousands are managing to defraud the taxpayer out of billions.”
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Britain: Billions of pounds in the Red thanks to Labour – Annabel Goldie MSP
Annabel Goldie MSP, Scottish Conservative Leader, says:
“Labour’s mismanagement of Britain’s economy has been catastrophic. Debt interest payments alone will soon reach £60 billion, twice the entire amount spent on Scotland’s health service, schools, police, roads and local services every year.
“Scotland’s share of Labour’s debt mountain is an estimated £72 billion. We need a government with a credible plan and the political resolve to put Britain back in the black. The risk of 5 more years of Labour is more waste, higher tax, a worse credit rating, higher interest rates and higher mortgages. Britain is billions of pounds in the red as a result of Labour’s mismanagement of the economy.
“In Scotland, the Conservatives have helped tens of thousands of businesses weather the worst of Labour’s economic storm by ensuring business rates were cut or abolished, a move which the Federation of Small Businesses says has prevented 1 in 8 small firms from going bust.
“We have to deliver that kind of real help right across the United Kingdom.
“That is why a Conservative Government would scrap Labour’s tax on jobs, get credit flowing again, protect and create jobs to boost the recovery, and get to grips with Labour’s debt. Dither and delay would risk the recovery, not help it. The time has come for action, and for change.”
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Gordon Brown’s record – Conservative “Vote for Me” campaign
Michael Gove has launched a new poster campaign putting Gordon Brown’s record at the heart of the election campaign.
These posters arrive alongside a new analysis of Labour’s time in power, and you can view both by clicking the links below.
Speaking at the launch, Shadow Education Secretary Michael Gove said:
“Gordon Brown is asking people to vote him in for another five years but he and his tired Government will just make things worse.”
“He has doubled our national debt and squandered billions of pounds selling off Britain’s gold at rock bottom prices. He has taken billions out of our pensions system and doubled the tax rate for the poorest workers. He has let down our young people by causing record youth unemployment, and overseen an increase in the gap between the rich and poor. And he has let 80,000 criminals out of prison early, leading to 1,500 crimes being committed by people who should have been behind bars.”
“We can’t go on like this. The choice at this election is five more years of Gordon Brown’s tired government making things worse or David Cameron and the Conservatives with the energy, leadership and values to get the country moving.”
… and here are some other things Gordon Brown did…
Cut the Defence Budget at a time of war – and got caught out denying it!
Gordon Brown misled the Chilcot Inquiry, Parliament and the public when he claimed that ‘the defence budget has been rising every year since 1997’
(Hansard, 10 March 2010, Col. 291).
He was later forced to admit that ‘I do accept that in one or two years defence expenditure did not rise in real terms’
(Hansard, 17 March 2010).
Figures from the Ministry of Defence show that the defence budget actually fell year-on-year in real terms on four occasions since 1997 – in 1998, 1999, 2002 and 2007.
(Channel 4 News Factcheck, 10 March 2010).
Taxed jobs as we were emerging from recession.
Last December, Gordon Brown’s Government announced a tax on jobs – a 0.5 per cent rise in the rate of National Insurance Contributions for both employees and employers. This comes on top of the
rise in NICs announced in the 2008 PBR, meaning a total planned rise of 1 per cent. This is a tax on all businesses and on every person earning over £20,000.
The Federation of Small Businesses has estimated that this could mean up to 57,000 jobs are lost. (FSB,
Press Release, 24 March 2010)
Increased spending on quangos by £10 billion.
The cost of unelected and poorly accountable government bodies has soared by almost £10 billion under Gordon Brown. In his first year as Prime Minister, total expenditure on so-called
“executive non-departmental public bodies” rose from £37.0 billion to £43.0 billion in 2007-08 – a 16 per cent rise
(Cabinet Office, Public Bodies 2007, p.10; Public Bodies 2008, p.10).
Figures for 2008-09 revealed quango expenditure rose by another £3.5 billion to £46.5 billion – a 7 per cent rise
(Cabinet Office, Public Bodies 2009, p.6) making a mockery of his claims to deliver a new politics.
Brought boom and bust to the NHS – which led to NHS cuts.
Despite massively increasing spending, Gordon Brown has been guilty of a ‘boom and bust’ approach to the NHS finances, forcing NHS Trusts into cuts and wasteful short-term spending. Between 2005 and 2007, 14,500 jobs were cut from the NHS as Trusts struggled to recover from deficits
(NHS Information Centre, NHS Staff 1998-2008, 25 March 2009).
And since 2004, the number of beds in the NHS has been cut by 21,500 – the equivalent of 12 per cent
(Department of Health, Bed availability and occupancy 2008-09, 30 September 2009).
Accident and Emergency departments and maternity units up and down the country have faced or are facing cuts and closures. And things are only set to get worse, as one of Gordon Brown’s own health advisers said that ‘the days of the District General Hospital are over’
(Professor Sir Ara Darzi, NHS London, A Framework for Action, 11 July 2007).
Let truancy rise to record levels.
In 1998, Gordon Brown’s Treasury set a target to reduce truancy rates to 0.5 per cent
(HM Treasury, Comprehensive Spending Review, Public Service Agreements 1999-2000, December 1998).
But the figure now stands at 1.05 per cent – up 44 per cent since 1996/7, well in excess of the Government’s target, and at a record high. 67,000 pupils skip school without permission every day
(DCSF, Pupil Absence in Schools in England, Including Pupil Characteristics: 2008/09, 25 March 2010).
Paid couples more to live apart than together.
The tax credit system penalises parents who live together, giving families a financial incentive to split up.
The IFS has highlighted the fact that a couple with children earning £20,000 between them could be more than £5,000 better off in terms of benefits and tax credits if they split up.
(The Sunday Times, 4 March 2007).
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