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| Basic rate taxpayers to get £120 Chancellor Alistair Darling has put up the personal tax allowance by £600 - meaning anyone earning up to £40,835 will gain £120 this year. Mr Darling's £2.7bn tax cut for this year came as part of measures to help those hit by the 10p tax rate's axing. He told MPs he would lower the level at which 40p tax is paid - so higher earners did not gain from the change. Tory George Osborne accused Mr Darling of "cynicism". Lib Dem Vince Cable feared it was a "short-term gimmick". "Let no-one be fooled why you are making this statement today - not because you wanted to.... but because this divided, dithering and disintegrating government are panicking in the face of the Crewe and Nantwich by-election," the shadow chancellor said. Mr Darling said the change was the "fairest and most effective way" to help those who lost out from the scrapping of the 10p tax rate. He said it meant 22 million people on low and middle incomes would gain an additional £120 this year. The money will come via a £60 lump sum in September pay packets, followed by a £10 monthly increase until the end of the year. "At a cost of £2.7bn, I will increase the individual personal tax allowances by £600 to £6,035 for this financial year, benefiting all basic rate taxpayers under the age of 65," he said BBC NEWS | UK | UK Politics | Basic rate taxpayers to get £120 When in a deep political hole throw money at the electorate it has worked in the past will it save Gordon ? Where did they get £2.7bn from thin air ?.....as always check the small print . |
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