Press Releases

HISTORIC PRESS RELEASE : New 10p Rate of Tax Means a Better Deal for the People of Britain [April 1999]

The press release issued by HM Treasury on 6 April 1999.

The new 10p rate of tax comes into force today – the lowest starting rate of tax for over 35 years.

Chancellor Gordon Brown today welcomed the new rate of tax:

“My Budget in March introduced tax cuts for a purpose – to make work pay, encourage enterprise and support families. And so from today, all taxpayers will see the benefit of the promises the Government has made to the British people. We are delivering on those promises to get a better deal for Britain.

“The new 10p rate – the lowest starting rate of tax in Britain for more than 35 years – will make work pay and help people, especially those who are low-paid, to keep more of the money that they earn.

“People will see the benefit of the new 10p tax rate in their first pay packet after 17 May – just a few weeks from now.

“As a result of the new 10p rate, 1.8 million low-paid workers will see their tax bills halved as a result – a gain of up to £150 a year. And from today too, every worker in Britain who pays national insurance will have their tax bills cut by £65 a year, because of the reforms we have made to national insurance contributions.

“When we make promises, we keep them.”