Basic rate taxpayers will be see their tax bills reduced by up to £540 by next April – a big win for the Lib Dems in Government.

For the third year in a row the personal allowance – the amount of money you don’t pay income tax on – is to rise, putting money back in the pockets of low and middle earners.

Pensioners have also gained thanks to the Lib Dems. The ‘triple lock’ on pension rises means that the basic state pension has risen by nearly £10 in two years – a far cry from Labour’s measly 75p rise.

Despite public finances still being in a mess because of Labour’s over-spending, the Lib Dems have been able to deliver this help to people on ordinary incomes by increasing taxes on the super rich.  A combination of tax avoidance measures, increased stamp duty on multi-million pound properties and axing loopholes at the top end means that the very wealthy will be paying a lot more tax.

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