PBR 2007: Not much joy for those on low incomes

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Alistair Darling was cautious in his first Pre-budget Report and failed to redress the blow to low-income taxpayers delivered by his predecessor, say the Low Incomes Reform Group.

Tax liabilities for those on very low incomes will rise next April because of the abolition of the 10% starting rate on earnings and pensions. That increase will be partly offset by rises in the personal tax allowances for people over the age of 65, and in tax credits. However, if you are on a low income, but neither a pensioner over 65 nor a tax credit claimant, you will be worse off.

Apart from some above-inflation rises in the tax credit rates and thresholds, the future shape of tax credits will remain much as it is now; an opportunity has been lost to put right some of the worst problems that we see on a day to...

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By biggins
10th Oct 2007 14:31

A bit more detail
Our website www.litrg.org.uk provides a more detailed appraisal, including some extraordinary, but welcome, criticisms from the Ombudsman on the tax credits chaos.

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