Davey promises tax cuts for millions if UK rejoins EU single market
The Lib Dem leader vows to raise tax thresholds if he becomes PM, in a speech to his party conference.
Liberal Democrats leader Sir Ed Davey has pledged tax cuts for millions of workers if his party comes to power in the UK's next general election, according to a speech at the party's conference. The Lib Dem leader announced a £17bn package funded by the economic benefits of rejoining the EU single market and customs union. This would raise the personal tax-free allowance to £15,000 annually, and boost the 40p income tax threshold from £50,270 to £56,000.
The Lib Dems claim this would result in an average £680 cut for most taxpayers, with full effects not taking place until the fifth year of a Lib Dem government. The announcement was met with applause from Lib Dem MPs and activists at the Brighton conference. The Lib Dems have previously frozen the £12,570 income tax allowance since 2021, leading to more people paying income tax.
In contrast, Reform UK announced a similar plan to unfreeze the personal allowance at £15,000 within 100 days if they win power, but have faced criticism for allegedly funding their cuts by reducing support for disabled people by £22bn.
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