Tories urge government to do more for middle-income workers

Tories urge government to do more for middle-income workersAn increasing number of Tories are urging George Osborne to take steps to help middle-income workers in the UK, who are facing pressure on their savings.

Mr Osborne can take steps to raise funds for tax-free personal allowance indicating that low income earners can earn higher amount before paying taxes. Conservative Chancellors Lords Lawson and Lamont are asking the treasury to help middle-income workers.

Lord Forsyth, who headed a tax reform commission for the Chancellor before the election, said that hard working people with lower earnings are paying higher amount of taxes. Tories want George Osborne to increase the threshold, which has a higher rate 40 per cent tax band. The additional income will become available to Mr Osborne because of a technical change in pension rules.

About £1billion shortfall in funding for the pensions for teachers, health workers and civil servants will be paid bypublic sector employers including HS and individual departments like education. The departments will be asked to find additional cash from within their own budgets and will count as savings for the Treasury. The tax-free personal allowance threshold is expected to rise next month to £10,000 a year.