The government has confirmed plans to freeze the annual tax-free personal allowance at £20,000, abandoning a previous proposal to reduce it. This decision marks a shift from the approach set out by the chancellor’s predecessor, who had signaled an intention to lower the threshold. The move could have significant implications for millions of taxpayers, as the allowance determines how much income remains free from income tax. The announcement comes ahead of the Budget, where further details on fiscal policy may be revealed.
Chancellor will use Wednesday’s Budget to maintain tax-free limit at £20,000 a year, reversing plan by predecessor Rachel Reeves
