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PM Burnham Drops Personal Allowance Raise After By-Election

7/22/2026

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Summary

Story summary

Prime Minister Andy Burnham withdrew proposals to raise the tax-free personal allowance.
He said frustration voiced in the Makerfield by-election made him rethink the policy.
Burnham told reporters the issue will be examined in the next budget, warning that any change would be costly.
The personal allowance, frozen at £12,570 since 2021, has pushed more earners into tax as wages rise.

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Story summary

Prime Minister Andy Burnham withdrew proposals to raise the tax-free personal allowance.
He said frustration voiced in the Makerfield by-election made him rethink the policy.
Burnham told reporters the issue will be examined in the next budget, warning that any change would be costly.
The personal allowance, frozen at £12,570 since 2021, has pushed more earners into tax as wages rise.