David Cameron will say that high taxes are 'immoral ' as 14 million working households receive a tax cut . David Cameron will say today that high taxes and wasteful government spending are ‘ immoral ’ as millions receive a tax cut . As 14million working households – more than nine in ten – are given an average boost of £200 a year to their incomes , the Prime Minister will set out the Conservative case for people keeping more of their own money – because they ‘ know best ’ how it should be spent . And he will make a bold argument for continued lower taxes , with less spent on ‘ bureaucracy ’ and ‘ crackpot Government schemes ’ . ‘ There is no such thing as public money , there is only taxpayers ’ money , ’ he will say . ‘ And we believe it ’ s people – not politicians – who know best how to spend their own money . And that ’ s what today is all about. ’ He will add that it is ‘ wrong – frankly immoral – for Government to spend money like it grows on trees ’ . Among the raft of changes coming into effect today , on what Mr Cameron will dub ‘ money back Monday ’ , are : . Other measures to encourage saving will also begin , with the Isa limit increasing to £15,240 and the 10p savings tax band abolished . Treasury analysis shows the changes will benefit 14million working households to the tune of £17 a month . And nearly million pensioner households – more than nine in ten – will benefit by £15 a month . Middle income households earning around £23,000 a year will benefit the most , and the top ten per cent of earners the least . Today will also see the abolition of the old pensions annuities , allowing retirement money to be accessed like a current account . Mr Cameron will say the changes make Britain a ‘ better and fairer place to live ’ , adding that low taxes ‘ go to the heart of what I believe as a Conservative . ‘ For me , there ’ s the economic case : That , in a competitive world , we need to incentivise work by making it pay . ‘ There ’ s the progressive case : That the best way to help with living standards is to let people keep more of the money they earn . ‘ But above all , there is the moral case : That it is wrong – frankly immoral – for Government to spend money like it grows on trees. ’ He will also pledge to eliminate the deficit ‘ without reaching into working people ’ s pockets like Labour would ’ . However , in a speech in Yorkshire , Shadow chancellor Ed Balls will point to figures from the Institute for Fiscal Studies showing families are £1,100 a year worse off over the past five years as a result of government tax and spending changes . And he will warn that the Conservatives will raise VAT . Mr Balls will say : ‘ David Cameron and George Osborne are going round the country telling people they ’ ve never had it so good . How out of touch can they get ? ‘ The truth is millions are worse off because of this government ’ s choices . ‘ And while millions are paying more , millionaires are paying less . Two years ago today they gave the top one per cent of earners in our country a £3billion a year tax cut. ’ Shadow chancellor Ed Balls will point to figures from the Institute for Fiscal Studies showing families are £1,100 a year worse off over the past five years as a result of government tax and spending changes . The Lib Dems said that the changes to income tax had been part of their manifesto and said Labour would cost 24million taxpayers £340 a year . Deputy Prime Minister Nick Clegg will say today : ‘ In government , we secured a tax cut totalling £825 every year for millions of ordinary working people . We now plan to take this further , raising the [ tax-free personal allowance ] threshold to £12,500 and giving millions of people a further tax cut worth nearly £400 . ’
More than anyone in ten working households will receive a tax cut from today . Personal allowance rising to £ 10,600 - putting extra £ 17 a month in pockets . Cameron due to set out case for people keeping more of their own money . He will argue for continued lower taxes , with less spent on ‘ bureaucracy ’ A rise in the personal allowance from £ ##50 to £ 10,600 . The first increase in the 40p higher threshold – in line with inflation – for five years . The £ 1,060 % personal allowance , which benefits traditional couples where one parent does not work . A one per cent increase in working age benefits .