A new petition is calling on Prime Minister Andy Burnham to reverse what campaigners describe as the "biggest tax raise in recent history" after he "sideswiped" more than 86,000 workers who signed a petition against the freeze on the tax-free Personal Allowance threshold.
Mike Haynes, 64, from Axminster in Devon, launched the original petition to get the tax-free Personal Allowance increased, and it reached 86,000 signatures after being shared by the Express. He has now started a fresh push to get Mr Burnham to take notice and end what he calls a stealth tax rise on working people.
Budget leaves threshold unchanged
In the Autumn Budget, the government declined to raise the £12,570 tax-free Personal Allowance threshold. This means more people will be pulled into paying more tax as wages and income rise while the allowance stays the same. State pensioners, however, were given a higher £13,037 limit with a special exemption.
Mr Haynes, who works as a warehouse forklift instructor, told the Express that the freeze is "unfair" and hurts working people.
Campaigner calls for £18,000 threshold
He said: "Before he became Prime Minister, the PM has previously hinted at increasing the tax thresholds which have been frozen since 2021.
"These are currently due to continue to be frozen for the next five years. We want the Government to raise the thresholds to £18,000 as we believe millions of people are hurting financially.
"The Prime Minister previously hinted at raising the allowances. We believe he is now apparently back tracking.
"Had thresholds not been frozen in 2021, they today could be around £16,400 a year. Governments are expecting people to take what we feel is a 10 year pay freeze, which I believe is not acceptable."
Allowance frozen since 2021
The tax-free Personal Allowance is the amount of money an individual can earn in a single tax year before they have to pay Income Tax to HMRC. As of the 2026-27 tax year, workers can earn £12,570 tax-free, then pay 20% tax on earnings above that figure, 40% on earnings above £50,270, and 45% on earnings over £125,140. These thresholds will remain the same next tax year, April 2027-28.
The allowance has been frozen since 2021, and the government recently confirmed it will continue to be frozen until 2031 at the earliest, meaning it will have been stuck at the same level for 10 years if it is finally increased in five years' time.
Mr Haynes added: "Andy Burnham sideswiped the allowances without any mention of it.
"Passing the buck with his going nowhere (I suppose backwards is a direction) budget designed to help people immediately with the cost of living crisis.
"How is giving a few people £100 going to help with energy bills when they are expected to rise by £400?
"How is removing of standing charges next April going to help people immediately? Oh did he help motorists? Did he heck!
"How much extra money being paid to the exchequer through fuel price increases? And none of it comes back to the people.
"It's a Budget designed for an early election."
Money expert Martin Lewis invited the Chancellor onto his ITV show following the Budget, where the tax rise was confirmed. Martin invited John Healey onto the show to answer viewer questions following the Budget speech, and the first question was about the frozen tax thresholds.
He asked the Chancellor: "Forgive me, you said in your speech yesterday 'we are not raising taxes on working people'. But this fiscal drag, the freezing of the tax thresholds, is the biggest tax that has ever been raised in recent history.
"Do you accept you are, while you might not be raising tax rates, you are increasing taxes. In truth?"
Mr Healey replied: "It is part of any government's revenue and judgements about threshold as well as rates are part of the judgements that have to be taken.
"The plans for the thresholds have been set for the next few years and I took the decision in this Budget that I wouldn't touch those and would do what I can where I could to help people through and make some bigger changes for the long term because fundamentally we've got parts of our system that need fixing."
