Some interesting proposals announced by Mr Cameron and Mr Clegg yesterday in their “programme for government”
Among the proposals are
- Increase the tax free allowance from the current £6,475 with a “substantial increase” in the allowance from April 2011.
- Moving the tax free allowance to £10,000 will be a “long term policy objective”
- Capital Gains Tax will be applied at rates “similar or close to those applied to income” – but no clear indication of when this will happen. Fingers crossed it is April 2011 to tie in with the increase in the tax free personal allowance?
- Air tax will change from a per traveller to a per plane basis – (bet Mr O’Leary at RyanAir finds a way to pass that on)
- Tax credits will reduce for higher earners
- IR35 will be reviewed and replaced with simpler measures – but ones that will not reduce the tax liabilities
Elsewhere you may have missed
- “We are committed to fair pricing for rail travel” (but who would committ to “unfair” pricing?)
- A national tree planting campaign will be launched
- Housing Information Packs will be scrapped
- 3rd runway at Heathrow will be scrapped (but what about the 2nd runway at Edinburgh?)
All in all it is good to see the government thinking on their feet – but the real test will come when the talking stops and the action starts.