The UK government has responded to petitions calling for an increase in the personal tax allowance from £12,570 to £20,000. Unfortunately, the Treasury has indicated that they have no plans to make this change, citing significant fiscal costs that would impact essential public services.
The government's current stance is to keep taxes for working people as low as possible while ensuring fiscal responsibility. They've decided not to extend the freeze on personal tax thresholds, meaning that from April 2028, working people will keep more of their earnings as thresholds rise with inflation.
It's worth noting that increasing the personal allowance to £20,000 would come at a substantial cost, potentially reducing tax receipts and impacting funding for hospitals, schools, and other vital public services.
There are ongoing petitions advocating for changes to the personal tax allowance, including one that has garnered over 171,000 signatures. However, at this point, there's no indication that the government will revise the current allowance.
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