# New Petition Challenges UK Personal Tax Allowance Freeze at £18,000 Campaigners push for higher tax-free thresholds ahead of the upcoming October Budget announcement. - **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk) - **Published:** 2026-10-15 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/21387f6c-de24-49ef-878a-2fee95bf0cfa ## New Petition Launched Mike Haynes has initiated a fresh parliamentary petition demanding the personal tax allowance be raised to £18,000. This follows a previous attempt that secured 86,538 signatures, falling short of the 100,000 threshold required for a formal debate. The new campaign remains active until April 6, 2027, seeking renewed government attention. ## Fiscal Drag Impact Experts highlight the phenomenon of fiscal drag, where rising wages push more individuals into higher tax brackets because the allowance remains stagnant. The current threshold of £12,570 has been frozen since 2021. Proponents argue that failing to adjust this limit effectively results in a long-term pay freeze for millions of workers. ## Economic Growth Arguments Ecotricity owner Dale Vince suggests that increasing the personal allowance by £3,000 could potentially boost GDP by 1.2%. He proposes financing this measure by ending Bank of England interest payments to commercial banks on reserves. Such economic theories are being leveraged to pressure the government ahead of the upcoming fiscal policy decisions. ## Government Stance and Budget Chancellor John Healey is preparing for his first Budget on October 28. While previous Chancellor Rachel Reeves confirmed the threshold would remain frozen until 2031, Prime Minister Andy Burnham has hinted at reviewing the policy. However, the government maintains that no formal commitment to change the current tax-free allowance exists today. ## Treasury Fiscal Concerns The Treasury estimates that raising the personal allowance to £18,000 would incur a significant fiscal cost exceeding £40 billion annually. Officials argue this reduction in tax receipts would necessitate deep cuts to essential public services. They claim such a move would disproportionately benefit higher earners rather than those on basic-rate tax bands. ## Public Service Trade-offs A £40 billion reduction in tax revenue is equivalent to slashing roughly one-fifth of the NHS budget in England. Alternatively, it represents two-thirds of total national defence spending. The government maintains that keeping thresholds frozen is a necessary choice to prioritize funding for hospitals, schools, and other critical public infrastructure projects. ## Alternative Support Measures To assist low-income workers, the government has tasked the Low Pay Commission with considering cost-of-living pressures in minimum wage recommendations. Additional support includes 15 to 30 hours of government-funded childcare for eligible parents. Furthermore, the administration has implemented measures to freeze rail fares and NHS prescription fees to ease household expenses. ## Political Trust Dynamics Prime Minister Andy Burnham has emphasized the importance of honesty in politics regarding tax policy. While acknowledging public interest in threshold adjustments, he insists that no unfunded promises will be made. The government continues to keep all tax policies under review as part of the standard legislative process leading up to the Budget. ## Sources covering this story - https://www.express.co.uk/finance/personalfinance/2257426/new-personal-tax-allowance-raise-18-000-update-deadline-passes — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._