Autumn statement: Let us know your reaction to the Chancellor's announcements
CHANCELLOR George Osborne delivered his Autumn statement earlier announcing changes to welfare payments which will see benefits rise below inflation.
Though carer benefits and disability benefits, including disability elements of tax credits, will be increased in line with inflation, most working age benefits including Job Seeker's Allowance, Employment and Support Allowance and Income Support will only rise by 1 per cent for the next three years. This is less than the current rate of inflation which stands above 2 per cent.
Meanwhile, from next April, the personal income tax allowance will rise by a further £235 meaning that workers can earn £9,440 before paying any income tax at all.
As a result of this and previous income tax threshold increases, Mr Osborne said "people working full-time on minimum wage will have seen their income tax bill cut by half.”
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The threshold for the 40 per cent rate of income tax will also rise by 1 per cent in 2014 and 2015 from £41,450 to £41,865 and then £42,285.
Additionally, the basic state pension to rise by 2.5 per cent next year to £110.15 a week.
As expected, the Chancellor also revealed that the planned 3 per cent rise in fuel duty scheduled for January has been cancelled.
As had previously been announced, £5bn-worth of investment is to be made in schools, transport, health and science. This will include an extra £1bn being spent on roads, and another £1bn used to improve good schools and build 100 new free schools and academies.
In a crackdown on high-earners and large corporations dodging tax, the Chancellor announced that 2,500 more tax inspectors will be going after evaders and avoiders and hundreds of millions of pounds of tax loopholes will be closed with immediate effect.
High-earners will also be hit by a further reduction in the lifetime pension tax-free allowance from £1.5m to £1.25m and annual tax-free allowance from £50,000 to £40,000.
How will the changes affect you?
What do you think of the way the government is running the country?
What will hit you the hardest?
Let us know and a selection of comments will be used in tomorrow's Grimsby Telegraph along with more details and local reaction to the Autumn statement