Taxpayers to get spending statement

Treasury personal statementEvery taxpayer is to receive a personal statement spelling out exactly how much of their income is paid to the state and what it is being spent on.

Chancellor George Osborne is expected to use his Budget on Wednesday to announce plans to issue annual personal tax statements from 2014-15.
Specimen statements prepared by the Treasury show someone on £25,200 a year sees £5,702.12 of their income go to the Exchequer in direct taxation.

Of that, the biggest slice goes on welfare which accounts for £1,900.71, followed by £992.91 for health and £743.26 for education.

Interest payments on the national debt account for £363.12 - somewhat ahead of the £329.08 for defence and more than double the £153.19 for the police. Overseas aid gets £56.74 while £28.37 goes towards the cost of Britain's contribution to the European Union.

The statements are said to be part of the Government's drive to make the tax system simpler and more transparent.

However, with the first statements due to arrive a year before the expected date of the next general election, Tory strategists will clearly hope they will keep up the pressure on Labour over public spending.

Earlier David Cameron set out plans to boost Britain's airport capacity and attract private money into the roads, as he promised to take on "vested interests" to force through improvements to the transport network.

Speaking ahead of a Budget in which Mr Osborne will have little spare cash for investment, the Prime Minister said he wanted to look "urgently" at private-sector options - which could involve tolls for new roads. He revived speculation about a new "Boris island" airport in the Thames estuary, by saying that the Government's aviation review will look at the pros and cons of the idea, heavily promoted by London Mayor Boris Johnson.

Reports suggest that the Budget could contain a cut in the 50p income tax rate paid by those earning above £150,000, perhaps to 45p.
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