From today, some 4900 people in Edinburgh will be lifted out of paying Income Tax, while a further 18,000 of the city’s basic-rate tax payers will get an extra £200 in their pockets.

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. This means that over two million people in Scotland will get a tax cut, whilst some 71,000 Scots will be lifted out of income tax altogether.

Commenting today, Mike Crockart, MP for Edinburgh West said:

“At a time when people are worried about their personal finances, this tax cut will help millions of people across Scotland and the UK.

“In Edinburgh alone, thousands will get an extra £200 to spend this year, and I know this will make a real difference.

“I am proud that thanks to Liberal Democrats in Government, almost a million people will be lifted out of paying tax altogether across the UK, while 23m people will get a tax cut.

“One way we are paying for this is by taxing the banks more, £10bn more, so they pay their share.”

“This tax cut is straight from the front page of our manifesto to the pockets of two million Scottish tax payers.”

Commenting further, Deputy Prime Minister and Liberal Democrat Leader, Nick Clegg said:

“We have to make difficult decisions but we can still make life fairer and that’s what Liberal Democrats in government and across Britain are doing.

“From today Liberal Democrats have delivered a £200 income tax cut to every basic rate taxpayer, and there’s more to come - our ambition is a country where no one pays any income tax on the first £10,000 they earn.

“These are the kind of decisions Liberal Democrats are making in Government to make life just that little bit easier for people who are facing difficult times.”

Notes:

1. The raising of the Income Tax threshold to £10,000 was a priority for the Liberal Democrats in the General Election: it was one of four policies we put on the front of our manifesto (along with the pupil premium; a rebalanced economy; and long-lasting political reform).

2. We have already started to deliver on all four of those key priorities.

3. By 2012/13, the Income Tax Threshold will be raised to £8,105, meaning that Liberal Democrats will have lifted 1.1 million people out of paying tax and will have given 25 million people a tax cut worth £326.