Budget 2018: Hammond to hike income tax relief a year early

UK deficit to reach lowest level in 20 years by 2023/24

Chancellor Philip Hammond announced today (29 October) that the income tax personal allowance and higher rate threshold will be increased in April 2019, bringing forward the Conservative's 2017 manifesto by a year.

Plans to increase the personal allowance to £12,500 and the higher rate to £50,000 by 2020 - announced in May 2017 - will now kick in next year, Hammond revealed in today's Budget. Currently, the personal allowance is £11,850 and the higher rate £46,350. Borrowing The Budget also revealed the Office for Budget Responsibility (OBR) has slashed the borrowing forecast for this year by £11.6bn, with Hammond claiming that the "the era of austerity is finally coming to an end." Hammond announced that borrowing this year will be £11.6bn lower than the OBR predicted in March, adding that...