Could lack of tax breaks be a gift to Labour?

A LABOUR election victory would be a disaster but, as things stand, it is very likely to happen. Abolishing inheritance tax and cutting the tourist tax are two creditable objectives for the Tories but they need something to appeal to their crucial core voters.

This is what I would suggest:

1. Double the savings tax-free interest allowance from £1,000 to £2,000. This would allow savers to deservedly retain more of their money and could be a vote-winner.

2. Increase the minimum income people can have before they become liable for income tax. Anyone receiving the new full state pension from this April will find themselves liable for income tax if their other sources of income are more than a small amount. Move the threshold up to, say, £15,000. With the Budget fast approaching, Jeremy Hunt has a one-off opportunity to give the Conservatives at least a fighting chance of being re-elected.

GARY GRISTWOOD, Wellesbourne, Warks. many senior citizens, trying to exist on the meanest state pension in the civilised world, are likely to find themselves with an income tax liability for the first time in years, due to the Chancellor’s decision to freeze the personal allowance. This is a backdoor attempt to effectively claw back lumps of the state pension triple lock — and many pensioners will be caught out, leaving them liable not only for the outstanding tax but for a substantial non-payment fine.

As the Conservatives will be highly reliant on the ‘grey vote’ at the forthcoming election, doesn’t the Chancellor realise how much this damages Tory prospects?