The Chancellor, John Healey, is reportedly considering raising the personal allowance from £12,570 to as much as £15,570, City AM reported last month. He delivers the Budget on Wednesday 28 October.
According to City AM, other tax rises, such as on capital gains, would pay for the change. The report has not been independently checked and remains speculation until it appears in the statement or is confirmed by the Treasury.
The allowance has been frozen at £12,570 since 2021. Rachel Reeves's November 2025 Budget confirmed the freeze would continue until 2031. City AM says the OBR confirmed the freeze would raise £8bn a year by 2029.
Brit Brief reports that the government has previously said raising the allowance to £18,000 would cost over £40bn a year.
A petition calling for an £18,000 allowance closed on 30 September with 86,538 signatures. That was short of the 100,000 needed for a debate, Brit Brief says.