THE Treasury minister has defended his government’s policy of cutting the tax-free allowance for pensioners and capping tax-free relief for charity donations.
David Gauke, who is also MP for South West Herts, said it was right to cut the tax-free allowance for over-65s from £10,500 and for over-75s from £10,650 to £9,205 for everybody. The allowance will rise from £8,105 for all others.
State pensions have just gone up by a record 5.2 per cent, or £5.30 per week, Mr Gauke said.
He said tax-free donations to charity will be capped at £50,000 a year or at 25% of your income – whichever is greater - to ensure “everyone pays the same amount”.
Speaking at a Berkhamsted Chamber of Commerce meeting, he said some would benefit from his government’s budget – but not others. Its aim was to cut the deficit and push up growth, he said.
He later said: “Negative press is part of the nature of politics.”