The UK Government recently confirmed the Personal Allowance will remain frozen at £12,570 until April 2030.
Mansion tax and private jet levy to be introduced in Scotland
Chancellor Rachel Reeves announced during the Autumn Budget that the Personal Allowance will remain frozen at £12,570 until April 2030. However, more than 6,800 people have signed a new online petition calling for the Personal Allowance threshold to be increased to £15,597 and the higher rate to rise from £50,271 to £62,379.02.
Petition creator Andy Hobson argues that increasing these two income tax bands would “give more people money in their pockets to pay their bills and rely less on government help”. His calculations are based on increasing the thresholds – frozen in April 2021 – using the Bank of England inflation calculator.
The campaigner added that raising the Personal Allowance “could also mean more money being spent so more VAT in the government’s pocket too”.
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He continued: “We are currently suffering fiscal drag because of this and the previous government chose to freeze thresholds but we think this is a stealth tax. As we pay more for goods, our tax free allowance stays the same meaning we’re getting poorer.”
The ‘Set the income tax personal allowance to £15,597 and higher rate to £62,379.02’ petition has been posted on the Petitions Parliament website.
At 10,000 signatures of support, it will be entitled to a written response from the UK Government and at 100,000 it would be considered by the Petitions Committee for debate in Parliament.
Tax thresholds in England and Wales 2025/26
- Personal Allowance (0%) – up to £12,570
- Basic Rate (20%) – £12,571 to £50,270
- Higher Rate (40%) – £50,271 to £125,140
- Additional Rate (45%) – over £125,140
Tax thresholds are a devolved matter in Scotland and on Tuesday, the Scottish Government announced proposals to increase the basic and intermediate tax bands.
Finance Secretary Shona Robison said the changes to the basic and intermediate rate income tax thresholds will protect lower-income households over the new financial year.
The Finance Secretary also confirmed there would be no changes to rates or the number of tax bands in 2026/27.
If the Budget is passed, the Basic and Intermediate rate thresholds will increase by 7.4 per cent to £16,537 and £29,526 respectively.
The Higher, Advanced and Top rate thresholds will remain at £43,662, £75,000 and £125,140 respectively.
Ms Robison said: “By raising the Basic and Intermediate rate thresholds by substantially more than inflation, this Budget once again provides tax support for low and middle-income earners.
“It also means that the clear majority of taxpayers in Scotland can expect to pay less income tax than in the rest of the UK.
“By delivering fair and progressive tax policies, we continue to deliver higher investment in the NHS and policies like free tuition not available anywhere else in the UK.”
Scottish tax bands 2025/26
- Personal Allowance (0%)- up to £12,570
- Starter rate (19%) – £12,571 to £15,397
- Basic rate (20%) – £14,877 to £27,491
- Intermediate rate (21%) – £26,562 to £43,662
- Higher rate (42%) – £43,663 to £75,000
- Advanced rate (45%) – £75,001 to £125,140
- Top rate (48%) – over £125,140
