Last week the Chancellor gave the final budget of this Parliament, and the message was clear. We have a long term economic plan that is working – and it was a Budget that works for you: tax cuts so people keep more of the money they earn, a helping hand for first time buyers, support for savers – and a plan that is building a healthier economy that won’t burden future generations with more debt than they can ever pay off.
Labour’s reckless overspending and mismanagement of the economy brought Britain to the brink – with businesses closing, people losing jobs and a record deficit.
Since then, we’ve been working to our long-term economic plan. There is much more to do, but we have made good progress. The economy is growing, living standards are rising, the deficit is down, debt is set to start falling as a share of national economy. There are record numbers of people in work – and more people of Indian, Bangladeshi and Pakistani ethnicity in work than ever before. That means more people with the security of a regular wage and able to provide for their families.
This budget continues the work we are doing. We believe that hardworking people should keep more of the money they earn. So we’ve announced income tax cuts for 27 million people – raising the amount of money you can earn before paying income to £10,800 next year and £11,000 the year after. This is a downpayment on our commitment to increase the personal allowance to £12,500 by the end of the next Parliament.
For first time buyers, we’re giving a helping hand. A new ‘Help to Buy ISA’ will mean for every £200 a first time buyer saves, the government will give a bonus of up to £50 – up to a total of £3,000. This will help more people achieve the dream of owning their own home.
And we’re backing savers, with a new Personal Savings Allowance that abolishes savings tax altogether for 17 million people. A new flexible ISA will also give people complete freedom to take money out of an ISA and put in back later in the year without losing their tax-free entitlement.
This is all good news.
But with warning lights flashing in parts of the world economy – like Greece in Europe – now is not the time to put this at risk. That is exactly what Ed Miliband as Prime Minister and a Labour government would do. All they offer is a return to the chaos of the past: more wasteful spending, more reckless borrowing, more taxes hitting families – and people across Britain would pay the price.
So at the election in just a few weeks, voters have a clear choice. We can put at risk the progress Britain has made, with Ed Miliband trying to lead a chaotic Labour government. Or we can stick with the competence of David Cameron as Prime Minster, leading a proven team and working to a clear plan to secure a better future for you, your family and Britain.
