When I talk to people in my constituency, they often ask me what I am doing as their MP to help in their daily lives. I am proud that this week’s Budget is yet again cutting taxes for ordinary people and slashing childcare costs for parents.
At the last election the Liberal Democrats’ top priority was to give low and middle earners a £700 tax cut. And we’ve delivered. From this April, for the first time ever, nobody will pay income tax on the first £10,000 they earn. This is helping 36,880 people in my Lewes constituency.
As the economy continues to recover, I think it’s important that we make sure everyone can share in the economic benefits. That’s why from April 2015, we’ll increase the personal allowance yet again, putting another £100 back in people’s pockets. This means the total Lib Dem tax cut will then be worth £800 a year.
While the Conservatives were campaigning to cut tax for the richest 15%, I am proud that we have ensured the Coalition delivers our top pledge to help ordinary working people by increasing the personal allowance. And we have done this four times faster than Labour managed during their 13 years in government.
Income tax is not the only way the Liberal Democrats are helping cut living costs. We want to do everything we can do help reduce the cost of childcare for parents. That is why Nick Clegg announced new tax-free childcare to save working parents up to £2,000 per child.
From next year, working parents will be able to get 20p from the government for every 80p they spend on childcare. This will help 2660 families in my constituency, and around 2 million families across the UK. I am delighted that we have been able to introduce this support on top of the 15 hours a week of free early years education that we have already introduced for 3 and 4 year olds.
All of these changes have been possible because the Liberal Democrats put aside any narrow Party interest back in 2010 to form a stable Coalition government. By producing a long term economic plan, the Lib Dems have been able to deliver tax cuts which are building a stronger economy and a fairer society.
