From today, Wednesday April 6, nearly 900,000 people will be lifted out of paying Income Tax while around 23m basic-rate tax payers will get an extra £200 in their pockets, according to North Devon MP Nick Harvey.
The Income Tax threshold, the point from which people start paying their taxes, will be raised by £1,000 today to £7,475.
This increase is the first step toward the Liberal Democrat commitment to raise the Income Tax threshold to £10,000, with a further rise of the threshold due in 2012.
In North Devon, this is expected mean around 2,200 people will no longer have to pay Income Tax and a further 31,000 will get a £200 extra in their pockets.
North Devon MP Nick Harvey said: “At a time when people are worried about their personal finances, this tax cut will help millions of people. In North Devon alone, 31,000 people will get an extra £200 to spend this year and I know this will make a real difference.
“This tax cut is straight from the front page of the Liberal Democrat manifesto to the pockets of 23m tax payers. These are the kind of decisions our party is making in Government to make life just that little bit easier for people who are facing difficult times.”