Rachel Reeves will give her spring statement on Wednesday (Image: Bloomberg, Bloomberg via Getty Images)
The drive to increase the personal income tax allowance to ￡20,000 annually has hit a new peak, as more than 215,000 individuals have now backed the petition as of Saturday afternoon. Launched by Alan David Frost on the Parliament website, the campaign has gained considerable backing.
The petition urges the Government to hike the threshold for taxable income from the present ￡12,750 to an ambitious ￡20,000 per annum. The House of Commons will now debate the petition on May 12.
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Once a petition on parliament.uk garners more than 100,000 signatures, it must be considered for a parliamentary debate. Additionally, the Government is obliged to issue a response after 10,000 signatures are reached.
The text of the petition states: "Raise the income tax personal allowance from ￡12,570 to ￡20,000. We think this would help low earners to get off benefits and allow pensioners a decent income.
"We think it is abhorrent to tax pensioners on their state pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy, creating growth."
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The Government issued a response on February 20. Petitions on the site remain active for six months, with this particular one set to expire on June 20, 2025.
The Government's response said: "The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility. The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.
"The Government has no plans to increase the Personal Allowance to ￡20,000. Increasing the Personal Allowance to ￡20,000 would come at a significant fiscal cost of many billions of pounds per annum.
"This would reduce tax receipts substantially, decreasing funds available for the UK's hospitals, schools, and other essential public services that we all rely on. It would also undermine the work the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.
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"The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way."
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Chancellor Rachel Reeves is set to deliver her spring statement, often referred to as a 'mini-budget', this week on Wednesday, March 26. Her latest tax and spending plans will be unveiled following the comprehensive Budget presented last October.
The petition and the Government's full response can be accessed online.