A Telegraph opinion writer opposes the Liberal Democrats’ plan to lift the UK personal allowance to £15,000, arguing it should instead be cut so more people pay income tax. The piece says over 20 million adults currently pay none and warns the rise could exempt a further 2.5m.
The piece cites Institute for Fiscal Studies analysis of government figures saying more than a third of adults pay no income tax. It contrasts 1999-2000, when the lowest-paid half received about 24% of income and paid 12% of income tax, with today, when they account for 25% of earnings and pay under 10%. It says the top 1% now pay 27% of income tax.
The article says Reform estimates a £15,000 allowance would cost about £21bn, while the Liberal Democrats put the cost at around £15bn. It also notes Tim Worstall’s proposal for the allowance for both income tax and National Insurance to be at least the minimum wage—£26,436.80 for a 40-hour week. The writer says long-term disabled people should remain exempt and argues for reducing the overall tax burden by other means.
