Income Tax: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of not increasing the personal allowance on levels of disposable income in Wales.
Answered by James Murray
The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility. At our first Budget, we decided not to extend the freeze on personal tax thresholds which was implemented by the previous Government.
The OBR’s forecast does not decompose policy impacts on Real Household Disposable Income (RHDI) per capita by individual policies or by country. Accounting for the total impact of Budget measures on a UK basis, the OBR forecast RHDI per capita to rise at an annual average rate of 0.5% per year over the parliament.
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