The Conservatives are considering a bold pitch to mirror the Liberal Democrats’ flagship election policy to raise the income tax personal allowance to £12,500 in the next parliament.
Senior Tories are said to be considering including the pledge in the party’s 2015 general election manifesto to counter Labour moves on capping energy prices.
At its conference in Glasgow last month, the Liberal Democrats voted to raise the allowance to £12,500 over the next parliament to take everyone earning the minimum wage out of income tax.
The allowance will rise to £10,000 next April, a policy pushed through by Lib Dems. Deputy Prime Minister Nick Clegg has attacked the Conservatives for claiming credit for raising the allowance even though they opposed it before the last election.
Treasury Chief Secretary Danny Alexander has also blasted the “bloomin’ cheek” of Conservatives for trying to claim credit for the tax cut. Ukip also wants to raise the personal allowance to a level above the minimum wage, around £12,300.
Chancellor George Osborne has also revealed the Autumn Statement will take place on December 4 and will include no “tax sweeteners” from the revenue created by higher growth.
Jacksons Wealth Management managing director Pete Matthew says: “The latest increase in the personal allowance came with a reduction to the higher rate threshold. While it would be good news we have to see if it comes with strings attached before getting too excited.”