Home Business NewsPolitics News We are seeing “biggest tax reductions in two decades” – Osborne

We are seeing “biggest tax reductions in two decades” – Osborne

31st Mar 14 9:28 am

A wide range of new tax cuts come into force this April, on top of cuts that have already been implemented, and Chancellor George Osborne is set to say that we are undergoing “the biggest reduction of business and personal tax in two decades”.

He is expected to come down hard on the benefits system in a speech in Essex. He is expected to say that the coalition government “inherited a welfare system that didn’t work” which created a country where “people were just parked on benefits”, the BBC reports.

“Frankly, there was not enough pressure to get a job. Some people could just sign on and get almost as much money staying at home as going out to work,” he is expected to say.

From tomorrow, corporation tax will be reduced to 21%, and the personal income tax allowance will be increased to £10,000.

Business rates will be capped at 2% from tomorrow, as announced in the Autumn Statement 2013, and changes to National Insurance will begin.

There will also be a new tax relief for investment in social enterprise from April, while various other changes to savings will come into force from 6 April.

Osborne is expected to claim that his changes to the personal and business tax regime will create greater economic stability and confidence.

Labour says that Osborne has made households £900 a year poorer already.

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