The Queen has confirmed that legislation will be brought forward by government to ensure there are no rises on income tax, value-added tax (VAT) or national insurance for five years.
The move, which was first announced in the Conservative Party’s election manifesto, was one of the measures announced in the Queen’s Speech which officially opened Parliament.
Legislation will also be brought forward to ensure people working 30 hours a week on the national minimum wage do not pay income tax.
This will ensure that the personal allowance for income tax, rises in line with the minimum wage and not with inflation.
The government has also already committed to raising the income tax personal allowance to £12,500 by 2020.
The Queen said: “My government will legislate in the interests of everyone in the country.
“It will adopt a one-nation approach, helping working people get on, supporting aspiration, giving new opportunities to the disadvantaged and bringing different parts of our country together.”
Prime minister David Cameron said: “As part of our long-term plan to back working people and make work pay, the government is determined to reward work by letting people keep even more of the money they earn.
“Today, the government is going further in its actions to offer more security to working people by confirming that legislation will be brought forward to ensure that future increases to the income tax personal allowance reflect changes to the national minimum wage.”
