It was announced that allowances will remain at 2009/10 levels with the personal allowance being £6,475, age related allowances £9,490 for those between 65 and 74, and £9,640 for those aged 75 and over.
The Chancellor stated in today’s PBR that the freeze on all personal allowances for 2010/11 will still provide taxpayers with a “real terms benefit” as these allowances have not been reduced in line with negative inflation.
Complete cock from the lying little bastard.
Allowances should rise in line with real earnings, not general inflation. Real earnings rise faster than inflation in most years. Real earnings have risen this year.
Freezing allowances is a rise in taxation.
Darling, you’re a fiscal drag artist.
Eh? Surely with a 5%ish drop in GDP, real earnings will have fallen this year…?
Tim adds: Aggregate real earnings, yes. But not for those in work. For recessions are not when 100% lose 10% of their earnings but when 10% lose 100% of their earnings (copyright Chris Dillow). Real wages for those in employment are still rising.
That’s because no public-sector employees are being sacked. As their pay continues to grow irrespective of the ability of the rest of us to support it, the average earnings of those in employment would appear to rise.