Summer Budget: Chancellor raises personal allowance to £11k

The personal allowance will increase to £11,000 next year, while the higher-rate tax threshold will rise to £43,000, the Chancellor has said.

The Conservatives made a manifesto pledge for the personal allowance threshold to hit £12,500 by the end of their five-year parliamentary term. It was previously announced it would rise from £10,600 in 2015-16, to £10,800 in 2016-17, and £11,000 in 2017-18. However, the £11,000 mark will now be in place next year, the Chancellor said. He also said the personal allowance will in future "always rise in line with the minimum wage". "These were our priorities at the election and they are the priorities of this budget. "Rates of income tax in this budget remain unchanged but the thre...