North Swindon MP Justin Tomlinson has welcomed news that Income Inequality is at the lowest for 30 years.
Between 2008/09 and 2009/10, under the last Labour Government, inequality reached its highest level since records began in 1961. Since then, according to the latest figures from the Office of National Statistics, inequality has gradually fallen.
In 2015/16 the Gini Coefficient, the internationally recognised measure of inequality, for equivalised disposable income was 31.6 – its lowest level since 1986.
The Government has been working hard to reduce income equality and have taken measures to address this issue.
These include:
- Cutting income tax by more than £1,000 for typical basic rate taxpayer: As a result of our changes to Income Tax, 31 million individuals will see their income tax bills reduced in 2017/18 compared to 2015/16. A typical basic rate taxpayer will pay more than £1,000 less Income Tax in April 2017 than in 2010. Between 2010 and 2015, 4 million of the lowest-paid were taken out of Income Tax altogether.
- Increasing the National Living Wage to give a pay rise to 2 million people: In April 2018, we will increase the NLW from £7.50 to £7.83 – a pay rise for 2 million people worth over £2,000 a year since the introduction of the NLW in April 2016.
- Ensuring that the richest are paying a greater share of taxes: The richest 1% are set to pay 28% of all Income Tax revenue in 2017/18 – a higher proportion than it was under the last Labour government.
Justin Tomlinson MP said: “I am very proud of the work the Government has done to reduce the gap between the richest and the poorest in the UK. The latest figures released by the ONS show that this work is paying off. Labour’s proposed tax hikes would hit working families with lower wages and higher prices. Labour’s own Education Secretary has admitted that their economic plans are a ‘high risk’ strategy. Working people would pay the price of a Labour Government with higher taxes, lower wages and more debt. Only the Conservatives can be trusted to take a balanced approach to public spending and ensure our economy is able to support our NHS and other public services.”
