Ben Test Hurst-Bm

Andy Burnham is facing calls to raise the frozen £12,570 personal tax allowance, including from pensioners who say rising costs and stagnant incomes are making them poorer. Institute for Fiscal Studies economist Jonathan Cribb said the government must decide whether to increase the allowance for everyone or introduce a higher threshold for pensioners, warning that millions could otherwise face higher tax bills and additional self-assessment requirements. Analysis by AJ Bell estimates that raising the allowance to £16,000 would cost about £35 billion, while restoring inflation-linked increases from the current level would reduce annual Treasury revenue by roughly £9 billion.