Plan to help 40,000 savers

ABOUT 40,000 Warrington people could be helped if proposals to cut taxes for savers and pensioners went ahead, a campaigner has claimed.
David Mowat, Prospective Conservative Parliamentary candidate for Warrington South says the cuts should be made to provide help for “innocent victims” of the credit crunch who are suffering as income from their savings falls.
In the long term, cutting taxes on savings would help build a savings culture and end Britain’s addiction to debt, says Mr Mowat.
Under Conservative proposals, 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 40,000 people across Warrington would benefit from these cuts, according to Mr Mowat (pictured).
He said: “Warrington’s savers and pensioners are the innocent victims of Gordon Brown’s recession. They are being punished for putting aside money. We need to cut taxes for them and help turn Britain from a spend, spend, spend society into a save, save, save society.
“We need change to deliver a culture of thrift at the heart of government and a culture of saving at the heart of our economy.”