George Osborne to take 1 million people out of income tax bracket
George Osborne will today announce an increase in personal allowances which will take around 1 million people out of the income tax bracket. This is a move purely and simply designed to assist low income families in the UK as he continues his strategy of "making the rich pay". So will this work?
While on the surface, taking nearly 1 million people out of income tax brackets is always a good move for this particular area of the UK population there may be further catches down the line. Any increase in VAT would hit each and every area of the UK population and ultimately reduce the benefits of an increase in personal allowances. However, the truth is that the UK population will need to feel the pain, as will the UK business arena, as the UK government attempts to rein in a £150 billion budget deficit.
While much of the budget would appear to have been leaked to the press over the last couple of days there is no doubt that George Osborne will keep a couple of "surprises" up his sleeve. Even though there is little scope for any "giveaways" he will attempt to reduce the impact of his budget on low income families in the UK.
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