In a speech which ended his party’s conference, the PM said he would raise the tax-free allowance from £10,500 to £12,500 by 2020.
SHAFAQNA- David Cameron has pledged to cut taxes for thirty million people if the Conservatives win next year’s election.
He also said the threshold for the 40p income tax rate would be raised from £41,900 to £50,000 by the end of a five-year Conservative government.
The changes would back people who “do the right thing”, he said.
Both tax reform proposals – the timing of which the party said depends on economic circumstances – received lengthy ovations.
Mr Cameron also promised:
• A Conservative government would protect the NHS budget for England
• He would “deliver” on a pledge of “English votes for English laws”
• The UK could not “walk on by” in the battle with Islamic State extremists
• Immigration would be at the heart of his EU negotiation strategy
• A vote for UKIP at the next election would be “a vote for Labour”
• He would scrap the Human Rights Act
• Every teenager could have a place on the National Citizenship Service
Increasing the personal allowance would take one million of the lowest-paid out of income tax and give a tax cut to 30 million more, Mr Cameron said.
Somebody working a 30-hour week on the minimum wage would pay no income tax, he said: “Nothing, zero, zilch.”
The Institute for Fiscal Studies said the combined cost of the tax changes would be £7.2bn by 2020.
Raising the threshold for the 40p tax band would be worth £1,600 a year to those earning £50,000, benefiting an estimated 800,000 taxpayers.