Tax Rates and Bands
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of increasing tax allowance rates to £20,000.
Answered by James Murray
The Government is committed to not raising taxes on working people, which is why we are not increasing the basic, higher, or additional rates of income tax, employee National Insurance contributions, or VAT.
The previous Government made the decision to freeze the income tax Personal Allowance at its current level of £12,570 until April 2028. The current Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds. As a result, they will rise with inflation from April 2028, meaning working people will keep more of their earnings.
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