Middle class families will benefit from tax breaks worth £758 a year which are at the centre of this week’s Budget.As part of a deal between the Tories and the Liberal Democrats, Chancellor George Osborne will dramatically accelerate moves to raise the personal income allowance to £10,000.He will also signal the beginning of the end of the 50p top rate of tax. Mr Osborne is expected to say that income over £150,000 will be taxed at 45p per £1 from April 2013, and indicate his intention to bring the top rate back down to 40p the following year.Government sources said Mr Osborne would also signal that he aims to lift the amount that can be earned tax-free to the £10,000 target by April 2014, far earlier than planned. The £10,000 allowance will apply to all 23million basic rate taxpayers and many higher rate taxpayers.Amid concern among Conservative MPs that their party has appeared too focused on cutting the 50p top rate of income tax, which is paid by just 320,000 individuals earning over £150,000, the Chancellor said yesterday his priority in Wednesday’s statement was workers on low and middle incomes.
Mr Osborne told the BBC’s Andrew Marr programme his blueprint was ‘a Budget for working people’. …
