UK's new prime minister Burnham has dropped consideration of raising the income tax personal allowance, people familiar with the matter said, aiming to signal fiscal discipline to a skeptical bond market. He had earlier floated increasing the current £12,570 (~$17,000) threshold, which would have cut taxes for millions, but the government is not including an increase in initial measures to tackle living costs. The personal allowance has been frozen for five years; inflation-driven wage growth ha

UK's new prime minister Burnham has dropped consideration of raising the income tax personal allowance, people familiar with the matter said, aiming to signal fiscal discipline to a skeptical bond market. He had earlier floated increasing the current £12,570 (~$17,000) threshold, which would have cut taxes for millions, but the government is not including an increase in initial measures to tackle living costs. The personal allowance has been frozen for five years; inflation-driven wage growth has widened the tax base via fiscal drag.