Personal Allowance

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 1st December 2015.

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Photo of Sir David Amess Sir David Amess Conservative, Southend West 11:30 am, 1st December 2015

What plans he has to raise the personal allowance during this Parliament.

Photo of David Gauke David Gauke The Financial Secretary to the Treasury

The Government are committed to raising the income tax personal allowance from £10,600 to £12,500 by the end of this Parliament. This is alongside our commitment to raise the higher rate threshold to £50,000. More than 30 million individuals will benefit from these changes. The summer Budget 2015 confirmed that the personal allowance will increase to £11,000 in 2016-17, and to £11,200 in 2017-18.

Photo of Sir David Amess Sir David Amess Conservative, Southend West

In the light of what my hon. Friend has said, will he reassure me that, as the economy continues to recover and grow, the Government will follow the sound Conservative principle of allowing people to keep more of the money they earn to spend as they wish?

Photo of David Gauke David Gauke The Financial Secretary to the Treasury

Yes. If we are to continue to raise the personal allowance and meet our commitments on income tax, we also need to make sure that we show discipline in departmental spending and, indeed, the welfare budget.