£15,570 Personal Allowance Plan Could Give Millions £3,000 Tax Boost
A proposal to increase the personal allowance from £12,570 to £15,570 could give millions of workers a £3,000 tax boost, according to Labour donor Dale Vince.
The plan would require changes to capital gains tax and Bank of England interest payments to commercial banks to fund the increase.
Vince claims that ending the freeze on personal allowance could generate significant economic growth, with economists modelling a 1.2% GDP growth in year one and a doubling of GDP (growth) by restoring the income tax allowance.
However, former Conservative Treasury minister Sir David Gauke questioned whether the banking proposal could raise the claimed sums without wider economic consequences, saying it would not be credible to leave ordinary people unaffected.