David Cameron has returned to Downing Street with the Tories having defied polls and won the general election. The Conservatives made gains in England and Wales and are forecast by the BBC to secure 331 seats in the Commons, giving them a slender majority.
In other news Labour leader Ed Miliband said he would stand down on Friday, saying his party must “rebuild” with a new leader.
Lib Dem leader Nick Clegg has also said he will quit, with his party set to be reduced from 57 to eight MPs.
UKIP leader Nigel Farage is also quitting after he failed to win Thanet South, losing by nearly 2,800 votes to the Conservatives.
Our blog post last week looked at how different party manifestos would affect taxation, but with it now confirmed that the Conservative’s hold a majority, below is a quick summary of what this will mean for taxation according to their manifestos.
It’s been well reported in the press that George Osborne has hinted that a future Conservative government would lift the rate at which 40p higher rate tax is paid to £50,000, alongside the basic personal allowance being raised to £12,500. This change would mean that the majority of workers on minimum wage would pay no income tax. The party are also strong believers that inheritance tax should not be paid on estates worth less than £1 million.
One of the most interesting points coming from the Conservatives’ action plan is that of paying off the deficit. They plan on paying it off sooner than other parties, and without raising taxes, which they hope will spare the electorate economic turmoil and inevitable future tax increase down the line. To do this, they will have to cut back on public spending which means, almost certainly, some benefits will be cut.