Wednesday, April 23, 2008

Labour’s 10p tax gaffe will hit Wales hardest

Research by the Welsh Liberal Democrats reveals that 195,000 people in Wales, have seen their income tax double – thanks to Gordon Brown’s tax bombshell.

Ahead of their debate this afternoon, research by the Lib Dems has also revealed that Wales will be harder hit than England by the tax hike. While 11.8% of taxpayers in England will be affected, the figure in Wales – where wages are lower overall – will be 13.3%.

Peter Black, AM for South Wales West, and Social Justice spokesperson for the Welsh Liberal Democrats, said: “These figures show clearly that nearly one in seven people in Wales will see their tax bills double under Gordon Brown’s plans. No wonder so many people are angry about it.

“195,000 people in Wales only pay the 10p tax rate. Their income tax rate has doubled. Labour’s tax gaffe is proving to be a major blunder ahead of the local government elections.

“The simple fact is that poorer people are paying more thanks to Gordon Brown’s last budget. That’s not social justice. It’s not fair. And people don’t like it.

“Traditional Labour voters are being hammered by their own party. No wonder so many are disillusioned.“

Figures from HM Revenue and Customs for 2007-8:

Year Total taxpayers Starting rate taxpayers Percentage
Wales 1,470,000 195,000 13.27%
England 26,500,000 3,130,000 11.81%
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