Johnny Mercer – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Johnny Mercer on 2015-10-21.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on earnings of the increase in the personal allowance planned for 2016-17; and how he plans to deliver an increase in that allowance to £12,500 by 2020.

Mr David Gauke

Summer Budget 2015 confirmed that the personal allowance will increase from £10,600 in 2015-16 to £11,000 in 2016-17. These changes will benefit over 29 million individuals, taking 570,000 taxpayers out of income tax altogether. A typical basic rate taxpayer will see their income tax bill reduced by £905, compared to 2010.

This is the first step towards meeting our commitment to raise the personal allowance to £12,500 by the end of this parliament.