Tax cut for residents

Income tax may have been slashed for more than 13,000 people in Exmouth and 50,000 across East Devon.

Government figures show income tax has been cut for 1.99m people across the South West, approximately 38 per cent.

This results in 71,000 of the lowest paid South West workers - just over 400 in Exmouth - being taken out of tax altogether, according to the figures.

The increase in the income tax personal allowance of �1,000, announced at the June 2010 Budget, came into effect last month and means that basic rate taxpayers are �200 a year better off.

And next year’s personal allowance increase of �630 will benefit a further 2,170,000 people in the South West – or 14,000 people in Exmouth - by �126 a year.

East Devon MP Hugo Swire said: “We know times are tough for families, so it is also important to lift people out of the income tax system and allow them to keep more of their hard-earned money.”

However, the tax benefits have been offset by a VAT increase to 20 per cent, increases in fuel duty and council tax frozen, but with services reduced.

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