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Summer Budget: George Osborne to slash taxes for millions of workers

In the first Conservative budget for 19 years, Chancellor George Osborne will increase the tax threshold for millions of workers.

In his pre-election pledge, Osborne also promised to cut the welfare bill by £12bn. Today, he is expected to announce plans to push pack the deadline to 2018-10, giving the government an extra year to reach this target.

Those set to benefit from the Tories’ first post-election Budget include low and middle-earners, as the Chancellor is set to lift the threshold for the 40p rate of income tax above its current level of £42,385.

The Budget will also see plans to increase the personal allowance to £12,500 - a promise the Prime Minister’s party made in the run-up to the General Election in May.

City A.M. has reported that the pace of welfare cuts will slow, with the Chancellor revealing around £8bn in cuts to be made by 2017-18, and a further £4bn by 2018-19. Initially, Osborne planned to make these cuts by 2017-18, but he is expected to push back the deadline in today’s statement.

According to Sky News, the Summer Budget will also cover the government’s plans to sell out of its majority stake in RBS.

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This was posted in Bdaily's Members' News section by Ellen Forster .