Overview
- An official Treasury response to a fast‑growing petition says the Government will not raise the personal allowance to £20,000, estimating the move would cost over £50 billion each year.
- Reports indicate Chancellor Rachel Reeves has abandoned plans to increase income tax rates in the 26 November Budget, with the Treasury declining to comment outside fiscal events.
- Media reports suggest income tax thresholds could stay frozen to 2030, a move forecast to raise roughly £8 billion a year and deepen fiscal drag that pulls more earners into higher tax bands.
- The Institute for Fiscal Studies cautions that avoiding a headline rate rise may lead to multiple smaller taxes that risk harming growth, with options reported to include a levy on high‑value homes and possible changes to pension and EV tax rules.
- Petitions crossing the 10,000‑signature threshold require a Government response, including calls to double pensioners’ tax allowances, as projections show some on the full state pension could pay income tax for the first time if freezes persist.