A petition signed by 161,218 individuals is calling on Chancellor Rachel Reeves to raise the personal income tax allowance from £12,570 to £20,000. The Treasury has indicated that there are currently no intentions to raise the allowance to £20,000 due to the substantial fiscal implications. Chancellor Rachel Reeves highlighted the significant fiscal impact of such an increase, noting that it would lead to a loss of billions in tax revenue, thereby affecting public services. Industry experts caution that the stagnant tax thresholds contribute to 'fiscal drag', disproportionately burdening low-income earners.