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Income Tax: Personal Allowance
12 May 2025
Lead MP
Lewis Atkinson
Sunderland Central
Lab
Responding Minister
James Murray
Tags
Taxation
Word Count: 6967
Other Contributors: 8
At a Glance
Lewis Atkinson raised concerns about income tax: personal allowance in Westminster Hall. A government minister responded.
Key Requests to Government:
The debate aims to discuss whether income tax personal allowances should rise and how such changes would be funded, considering their potential regressive impact on inequalities of income.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The debate was triggered by over 250,000 citizens signing a petition regarding the Income Tax Personal Allowance. The context is that average disposable incomes after tax fell from 2019-20 to 2023-24, leaving people poorer at the end of the last Parliament than they were at the start.
Daisy Cooper
LD
St Albans
Joined the debate underscoring the need for effective measures to address living standards and poverty, advocating for policies that would alleviate financial burdens on working families and pensioners.
Argued that the tax system may not be the best way to address unexpected financial shocks but acknowledged the importance of providing support.
James Wild
Con
North West Norfolk
Argues against increasing the personal allowance due to the high financial cost and questions Labour's ability to manage public finances responsibly.
Jamie Stone
LD
Caithness, Sutherland and Easter Ross
Suggested a mechanism for offsetting unexpected bills faced by carers against tax liabilities.
Lewis Atkinson
Lab
Sunderland Central
Discussed the disparities in benefits from raising personal allowances for different income levels and geographical areas. He also mentioned the public sentiment on living standards and the need to manage public finances well. Notes that raising the personal allowance would cost around £50 billion to £65 billion. Discussed the impact of recent policies on pensioners receiving only the state pension. Reminds the House that there are personal stories behind signatories to the petition and emphasises the importance of economic policy debates.
Tom Morrison
LD
Cheadle
Shared a personal anecdote of meeting a struggling family and emphasized the importance of supporting low-income earners by raising the personal allowance or scrapping unfair child benefit caps. He also called for action to reduce child poverty.
Ashley Fox
Con
Bridgwater
Paid tribute to his constituent Mr Alan Frost for raising the number of signatures required and questioned the impact of freezing the basic allowance at £12,570 on pensioners with limited income.
Wendy Morton
Con
Aldridge-Brownhills
Expressed concern about the financial impact of pensioner tax thresholds and highlighted the importance of considering pension incomes and maintaining the triple lock, although not the subject of this debate.
Government Response
James Murray
The Exchequer Secretary to the Treasury
Government Response
Acknowledges the public interest in the topic and reiterates the Government’s commitment to keeping taxes low for working people and pensioners. Stresses the importance of fiscal responsibility, noting that raising the personal allowance to £20,000 would cost over £50 billion, potentially leading to economic chaos if abandoned.
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Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.