The economy, tax and budget

Imagine the difference a stronger local economy would make in Torbay. When businesses thrive, they take on more staff and can afford better wages. That extra money in people’s pockets raises living standards, supports shops and cafés along the coast, and leaves families with a little more to spend or save. The same growth also brings in higher tax receipts from the income people and companies already earn. That revenue can fund better public services and infrastructure without the government having to raise tax rates. More jobs appear, competition helps keep prices down, and poverty eases as a result.

Most of that revenue still comes from the same familiar sources: income tax, National Insurance and VAT do the bulk of the work, with corporation tax, business rates and other duties making up the rest. Yet the personal allowance ( the amount you can earn before income tax kicks in) remains frozen. As wages and pensions gradually rise, more people, including many retirees, find themselves paying tax. For pensioners and hard-pressed families in Torbay, simply lifting that threshold would put real money back into their pockets. Extra taxes on pensions or property would hit the same households again. Meanwhile, the small tourism and hospitality businesses that keep much of the bay’s economy alive would feel the strain from any rise in business rates, employer National Insurance or wage costs.