Budget 2010: Income tax threshold raised

George Osborne said this will give 23 million people up to an extra £170 per year and take 880,000 people out of the tax system altogether. The increase will see the personal allowance raised to £7,475. He also said the higher rate income tax threshold will be frozen. The £1,000 increase is part of the coalition's plan to eventually raise the allowance to £10,000 - a key Liberal Democrat pledge in the run up to the election.