· News

Emergency Budget: 850,000 low earners won't have to pay income tax

The Government has pledged to take 850,000 low earning employees out of income tax through new tax breaks.

The chancellor of the Exchequer has announced a £200 tax cut for as many as two million staff paying the basic rate. He also said the personal income allowance would increase by £1,000 from £6475 to £7,475.

But those earning higher earnings and paying higher tax rates will be no better off from the decision, which is expected to cost the struggling economy £3.5 billion.