Main Points

The removal of people on the minimum wage from the tax net through increased personal and PAYE allowances, payable as tax credits;

The extension of the standard rate band to remove significant numbers of taxpayers from the higher rate of tax;

The introduction of a new middle rate of tax at 33 per cent;

The restoration of parity of taxation at the standard rate band between families with one spouse working and families with two spouses working;

The increasing of tax exemptions, especially for pensioners;

The provision of additional mortgage relief for families with dependants.