Milton Keynes South MP Iain Stewart has warmly welcomed today’s announcement that a new personal savings allowance will see 95 per cent of taxpayers out of savings tax altogether.
The announcement was made by Chancellor of the Exchequer, George Osborne, who today unveiled his final Budget before the general election.
His plans were hailed as a “great success” by Mr Stewart, who said, “Many of us have been campaigning for changes to the savings tax.
“If you work hard and save you should absolutely be able to keep more of your own money.”
From April next year the first £1,000 of the interest earned on all of your savings will be completely tax-free.
There was also an announcement on a new help-to-buy ISA. For every £200 saved, the government will top it up with £50 more.
Mr Osborne told a packed House of Commons that “Britain is walking tall again” after five years.
Mr Stewart added: “We have a long term economic plan that is working. There are more people in work than ever before, inflation is down and wages are up.
“It is vital we stick to the path we are on and not turn back to the chaos a Labour government would create.”
But the Labour candidate rivalling for Mr Stewart’s seat said the government cannot continue cutting infrastructure and affordable housing.
He said: “The government’s only solution to rising house prices is to subsidise deposits for first-time buyers.
“We need a better plan that actually gets Milton Keynes building more affordable homes to rent and buy.
“We can’t simply go on cutting.”