The Chancellor of the Exchequer George Osborne delivered his 2012 Budget in the Commons today, promising to increase personal allowances.
In an hour long address to the House, he said that from April 2013, people will be able to earn £9,205 before they have to pay income tax.
The Government forecasts that it will help to make 24 million people £220 a year better off, and marks the next step in an effort to eventually increase the personal allowance to £10,000.
The increase in the personal allowance will help millions of people to be lifted out of income tax.
George Osborne said it was a 'working budget'.
However, in an impassioned response, the Leader of the Opposition, Ed Milliband, labelled the announcement a 'Budget for millionaires'.
His call was based on the cut in the higher rate of tax from 50p to 45p, which he said would given the richest people in the country a tax cut worth thousands of pounds.
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