She sent out a "Feeling the Pinch" financial survey to 10,000 homes in Malvern Hills and Wychavon in December and the replies are beginning to show a clear pattern. Worcestershire's savers and pensioners are the "innocent victims" of this recession, and are suffering as the income from their savings falls. Over the long term, cutting taxes on savings would help build a savings culture and end Britain's addiction to debt under Gordon Brown.
Harriett Baldwin said, "So many people replying to my survey mention the fact that they feel they are being punished for doing the right thing all their lives and living within their means. That is why I welcome the plans that were announced by the Conservative Party this week."
Under the Conservative plans:
- Basic rate taxpayers would pay no tax at all on their income from savings, making them up to £7,200 a year better off.
- The income tax allowance for pensioners would be increased, with age-related personal allowances rising by £2,000, helping them by up to £400 a year.
- The package would be paid for by reducing the growth in government spending by £5 billion. Instead of rising by £30 billion next year, the increase would be £25 billion. Spending on the NHS, schools, defence and international development would all be protected.
- An estimated 1.8mm people in the West Midlands would benefit from these tax cuts.