05/01/09 - Cllr Tomlinson Backs Cameron's Stance On Economy

Local North Swindon Conservative Parliamentary Candidate, Cllr Justin Tomlinson has today given his strong backing to plans unveiled by Conservative Party leader David Cameron to help hard pressed families and pensioners through the tough year ahead.

David Cameron today called on the Government, in its spring budget, to:

• abolish income tax on savings for basic rate taxpayers;

• raise the pensioners' personal allowance by £2,000 to £11,490;

• and pay for this by reducing the growth of government spending in 2009 in departments other than Health, schools, Defence, and International Development to 1% in real terms.

This will save £5bn - the same amount Labour think they can save in 2010/11 without affecting frontline services.

How these measures will help – an example – A 70 year old couple who are retired and have total pension income of £14,000 a year each. They currently pay £902 in income tax each, or £1,804 in total. Their tax bill on their pensions would fall to just £502 each, or £1,004 in total, so they would be £400 a year better off each, or £800 better off in total. If they also currently get £1,000 a year each in interest from their savings account, they would pay £200 less each in tax on savings, or £400 in total. So in total they would be £1,200 better off.

Justin commented:

"Not only do these measures help people now suffering from Labour's recession but they will help build a more responsible savings culture. It will help end Britain's addiction to debt under Gordon Brown.

"The Government’s policies to deal with the recession are not working. The banking bailout has not got lending flowing again, the stamp duty holiday hasn't stopped house prices falling, and their VAT cut actually made things worse by undermining confidence and adding to the debt crisis."