£15,570 Personal Allowance Plan Could Give Millions £3,000 Tax Boost

Millions of workers could see their tax bills reduced by £3,000 if plans to raise the personal allowance are implemented. The proposal would increase the allowance from its current level of £12,570 to £15,570.

Dale Vince, a Labour donor and owner of Ecotricity, suggests that the change could be funded by ending interest payments on commercial bank reserves held at the Bank of England. This move would save around £30 billion per year, according to Vince.

Vince also proposes bringing capital gains tax rates into line with income tax rates in a submission to the Treasury ahead of the Budget.

However, former Conservative Treasury minister Sir David Gauke has expressed skepticism about the proposal. He questioned whether ending interest payments on bank reserves would have the desired effect without causing wider economic consequences.