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Budget 'lifts 42,000 more workers out of income tax' Budget 'lifts 42,000 more workers in Wales out of income tax'
(40 minutes later)
An additional 42,000 Welsh people are expected to pay no income tax as a result of the Budget. An additional 42,000 people in Wales are expected to pay no income tax as a result of the Budget.
The Chancellor lifted the threshold at which tax is paid, due to rise to £8,105 next month, to £9,205 in 2013. George Osborne has lifted the threshold at which tax is paid, due to rise to £8,105 next month, to £9,205 in 2013.
George Osborne also said businesses in an enterprise zone in Deeside will be able to write off the cost of plant and machinery against tax. The chancellor also said businesses in an enterprise zone in Deeside will be able to write off the cost of plant and machinery against tax.
The zone will focus on advanced manufacturing and includes the Airbus wing factory at Broughton. The Welsh government called it "disappointing" and "not a Budget for jobs and growth."
Some government departments will have the option to introduce more local pay for civil servants whose wage freezes end this year, he said. Some government departments will have the option to introduce more local pay for civil servants whose wage freezes end this year, the chancellor announced.
Mr Osborne previously asked independent pay review boards to examine the scope for introducing regional pay deals in the public sector.Mr Osborne previously asked independent pay review boards to examine the scope for introducing regional pay deals in the public sector.
Regional pay is strongly opposed by the Welsh government and by critics who say it will leave Wales worse off. Regional pay is strongly opposed by the Welsh government and by unions who say it will leave Wales worse off.
Mr Osborne said the Treasury would publish its own evidence for the boards, which are due to report in the summer.Mr Osborne said the Treasury would publish its own evidence for the boards, which are due to report in the summer.
'Reward work'
Delivering his third Budget, he said he would "reward work", adding: "Britain is going to earn its way in the world."Delivering his third Budget, he said he would "reward work", adding: "Britain is going to earn its way in the world."
More follows. Raising the income tax threshold is a key policy for the Liberal Democrats.
The UK government said the latest rise in the personal allowance means 95,000 people have been taken out of income tax in Wales since the coalition came to office. More than 1m people will benefit overall, the Wales Office said.
Among other measures it highlighted as beneficial to Wales were:
  • An extra £11.7m for the Welsh government - which has an annual budget of more than £14bn - over the next three years as a result of spending changes in Whitehall.
  • Mobile phone coverage will be improved along the A470 between Llandudno and Cardiff.
  • Cardiff will get funding of £12m to deliver ultra-fast broadband.
  • Child benefit will be withdrawn from people earning more than £50,000, instead of £43,000 as originally intended. It means 21,000 families will keep the benefit.
The Deeside zone will focus on advanced manufacturing and includes the Airbus wing factory at Broughton.
Capital enhancement in enterprise zones have been the subject of negotiations between the Treasury and Welsh government Budget Minister Jane Hutt. Deeside is one of five zones being set up by the devolved administration.