I have received comments from constituents regarding the petition to raise the Personal Allowance to £20,000.
I note your concerns regarding tax thresholds. The previous Government made this difficult but necessary decision to ensure the tax system supports strong public finances. However, under the previous Government, the Personal Allowance increased by over 40 per cent in real terms since 2010, ensuring some of the lowest earners do not pay any Income Tax at all. Moreover, if the Personal Allowance had been uprated by inflation every year since 2010-11, it would have only been around £9,650 in 2023-24, lower than its current level of £12,570.
I am pleased that, at Autumn Budget 2024, the Chancellor announced that from April 2028, personal tax thresholds will be uprated in line with inflation. I am, however, disappointed that the Chancellor announced £40 billion of tax increases, the largest in a generation, breaking promise after promise and raising taxes for working people.
I will be waiting for the government’s response to the petition.
