Tax Rebates & Refunds

Welsh Lib Dem leader calls for income tax reduction for low earners

January 22, 2013
Posted in Income Tax — Written by Chris

The leader of the Welsh Liberal Democrats, Kirsty Williams, has called for income tax rates to be reduced for low-earning families in Wales.

To mark the 150th anniversary of the birth of former Prime Minister David Lloyd George, Ms Williams wants a People’s Budget to be introduced. In this Budget, which would utilise powers proposed by the Silk Commission, the basic rate of income tax would be lowered from 20 per cent to 18 per cent. This is in line with the pledge originally made by Lloyd George back in 1909.

Explaining her plans on the Click on Wales blog run by the Institute of Welsh Affairs, the politician wrote:

“For the first time, the Silk Commission would give the National Assembly the power to make the tax system more progressive.

“Crucially, it recommends that the National Assembly would be able to vary the rate of tax for each of the tax rates by themselves.

“As a result, it would be possible to lower the tax rates for the poorest. A reduction in the basic rate from 20% to 18% would save the average worker in Wales £750 a year and would cost around

If such a change is introduced, it is likely to be brought into effect at the beginning of a tax year and it would not apply retroactively. This means that it would reduce low-earning households’ tax bills overall, but people would not be able to claim tax back for previous years.

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