Key personal tax threshold £12,570 update as £18,000 call backing soar | Personal Finance | Finance
Chancellor Rachel Reeves is being urged to raise the lowest tax threshold (Image: Getty) Support is soaring for a new call for Chancellor Rachel Reeves to raise the lowest income tax threshold to £18,000. A new petition on the parliament website has soared in support since it was created – and it is urging Ms Reeves to reverse her decision to freeze the lowest income tax threshold of £12,570 until 2031. In the November budget, Chancellor Rachel Reeves extended the tax thresholds freeze to 2031. For the 2026/27 tax year, the standard UK Personal Allowance remains frozen at £12,570, meaning no income tax is paid on earnings up to this amount. Some of Britain’s most financially vulnerable workers face being taxed the moment their earnings exceed that figure – and because it has remained unchanged, inflation and wage growth mean that considerably more people are now liable for tax than would otherwise have been the case had it risen in line with historical precedent. The petition, which can be viewed here, said: “Raise the personal …
