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

Millions of workers could receive a £3,000 tax boost if plans to increase the personal allowance are implemented.

The proposed change would see the allowance rise from £12,570 to £15,570, with Labour donor Dale Vince suggesting that changes to capital gains tax and Bank of England interest payments on commercial banks' reserves could fund the move.

Vince claims that ending the freeze on personal allowances could generate a 1.2% GDP growth in year one, or double the current GDP growth rate.

However, former Conservative Treasury minister Sir David Gauke has expressed skepticism about the proposal, questioning whether it's feasible to raise the £20 billion needed without impacting competitiveness and lending to small businesses.