Budget 2018: Philip Hammond 'set to bring forward income tax cuts'
1 min read
Philip Hammond is looking to announce a rise in income tax thresholds in Monday's Budget, a year earlier than planned.
The changes would take effect in April 2019, according to the Telegraph.
In the Conservative's 2017 manifesto, income tax cuts were set to be introduced in 2020-21. The party pledged to increase the personal allowance by £650 to £12,500, and to increase the higher threshold to £50,000.
The proposal has reportedly become viable this year after the Office for Budget Responsbility revised its deficit projections by £13bn.
The Chancellor is expected to say that the independent watchdog will cut burrowing forecasts until 2022, due to an increase in tax receipts.
The move, which will allegedly benefit 30 million taxpayers, could ease tensions on the Conservative benches, where some had feared the income tax rise could be scrapped altogether to help fund an NHS cash boost.
However, other MPs had called for the rise to be halted altogether to allow more money to be pumped into the troubled Universal Credit scheme.
Conservative MPs unhappy with the Government's Brexit strategy have raised the prospect of voting against the Budget.
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