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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

Sunderland Central
Opened the debate
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.

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.
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.