Theresa May has welcomed further income tax cuts for people in Maidenhead. In the Summer Budget, the Chancellor set out the next steps in his plan to support working people by ensuring they keep more of the money they earn. The personal tax-free allowance will increase by £400 to £11,000, so that next year a typical rate income taxpayer will be £905 better off compared with 2010.

Meanwhile, the threshold for the higher rate of tax will increase to £43,000, saving the typical higher rate taxpayer £142 and lifting 130,000 people out of the rate altogether.

Over 50,000 people in the Maidenhead constituency will benefit from changes to the personal allowance, and over 800 will be taken out of income tax altogether.

The Budget also introduced a new National Living Wage for over 25s, which will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third during this Parliament – a cash increase for a full time worker of over £5,000.

Commenting, Theresa said: “This Budget is important in continuing to move Britain towards being a higher wage, lower tax, lower welfare economy. The new National Living Wage and the increases in the personal allowance will mean a pay rise for millions of people across the country. It is fantastic that over 50,000 people in Maidenhead are going to benefit from these changes – this means local people keeping more of the money they’ve earned, giving them and their families more financial security for the future.”

ENDS

Contact Theresa May:

Office: 020 7219 5206

Email: [email protected]

Web: www.tmay.co.uk

Notes to editors

1. In 2016-7 the personal allowance will rise to £11,000. This is a tax cut for 27 million

people, saving the typical basic rate taxpayer £80. Because of rises in the personal

allowance since 2010 the typical taxpayer will be paying £905 less tax than they

would have been in 2010/11, with 3.8 million people not paying any income tax at all

(HM Treasury, Summer Budget 2015, 8 July 2014).

2. In 2016-17, the threshold for the higher rate of income tax will rise from £42,385 to

£43,000. This is the first time since 2010 that the higher rate threshold will go up by

more than inflation alone. These changes will lift 130,000 individuals out of higher

rate tax by 2016-17, compared to 2015-16. A typical higher rate taxpayer will benefit

by £142 in 2016-17, and will be £818 better off compared to 2010 (HM Treasury,

Summer Budget 2015, 8 July 2014).

3. In the Maidenhead constituency, an estimated 50,357 people will benefit from

changes to the personal allowance, including 855 people who will be taken out of

income tax altogether in April 2016. These estimates are modelled using regional

statistics on the benefits of Budget 2015 from HM Treasury and ONS constituency

population statistics.