16th November 2004

Ottaway : Action to help working families and pensioners in Croydon
New proposals to reverse Labour's tax hikes for those on low and middle incomes

Ahead of the Government's annual mini-Budget at the beginning of December, Richard Ottaway, MP for Croydon South, today backed new Conservative proposals to cut the level of tax on low and middle income earners in Croydon. A new consultation paper proposes a number of ways in which more people on lower incomes can be taken out of tax completely, and how many on middle incomes can be freed from having to pay punitive, top rates of income tax.

Estimates suggest that since 1997, due to Tony Blair's stealth tax increases in income tax thresholds and National Insurance, an average of:

• 6,400 more people in Croydon South on low incomes have now being dragged into the tax system, including part-time workers on the minimum wage, students working weekends to pay their tuition fees, and pensioners receiving just £60 a week from a personal pension.
• Another 2,000 more people in Croydon South are now paying top rates of income tax, including deputy head teachers, police inspectors, warrant officers in the armed services, and many hospital matrons.

Richard Ottaway explained,

"Conservatives believe in low taxes. Families and businesses across Croydon know better how to spend or invest their money than regional bureaucrats or Whitehall pen-pushers.

"Tony Blair promised not to raise tax 'at all'. But he did - 66 times. Now independent experts agree that if Tony Blair were to be re-elected, taxes will have to go up yet again. Yet too much taxpayers' money is being wasted, and high taxes are undermining incentives to work, to save and to invest.

"We need action to ensure all taxpayers get value for money, to thin down fat government, and ensure that hard working families and pensioners and those on modest and middle incomes across Croydon receive a fairer deal."

ENDS

For further information please call 020 7219 6392

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