Tax break leaves 'no room for manoeuvre'

The chancellor's £600 increase in the basic tax allowance to £6,035 leaves the government no "room for manoeuvre", the Institute for Fiscal Studies (IFS) has claimed.

IFS's director Robert Chote told BBC Two's Newsnight programme that this financial "give-away" got rid of any breathing space created by the government in this year's budget.

He remarked: "The fact that the costs may go on in future years if the chancellor can't claw this back makes the situation that much more difficult."

Mr Chote added that the government faces an "unpalatable" decision between giving up on the official fiscal rules or making "a fresh set of losers and a fresh set of political problems".

He said that this was a "pretty unenviable choice" for the government in the current political and economic climate.

Solicitors in Northern Ireland can offer advice on income tax and other tax issues.

The chancellor's announcement has been made as a consequence of the politically-damaging row and backbench rebellion that surrounded the abolition of the ten pence income tax band.

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