Conservatives vow to cut basic rate of income tax

THE Welsh Conservatives have pledged to cut income tax in Wales by 1p in the pound if elected at next spring's Senedd Election.

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It has calculated that a 1p reduction in the basic rate of income tax would cost a Tory administration in Cardiff Bay around £300m annually in lost tax revenues.

However, Welsh Conservative leader Darren Millar said as a result the average working family would be £450 better off.

The party said the reduction representing just over 1% of the Welsh Government's total budget of £26bn - would be made up from yet to be defined efficiency savings, although insisting it would not impact the biggest spending areas of health and education.

It has also committed to protecting funding for farming.

It said it has no plans to reduce the additional rate of tax at 45% as a way of attracting high net worth individuals into Wales.

However, as income tax is progressive the higher the salary the biggest will be the tax saving.