Campaigners hoping to pressure new Prime Minister Andy Burnham into reforming the lowest tax threshold have just three daysd remaining to mobilise support – and it’s incredibly close to succeeding. A petition on the Parliament website has attracted backing from 82,000 individuals – and should 100,000 signatures be secured, it will be considered for parliamentary debate – potentially compelling the Government to outline its stance and contemplate modifications.

The personal tax threshold of £12,570 has remained unchanged since 2021 – meaning anyone with earnings exceeding this amount faces taxation. Critics have condemned it for generating ‘fiscal drag’, resulting in many of the lowest-paid employees paying increasingly higher tax as inflation drives wage increases.

The petition, which closes on 30 September, created by Mike Haynes states: “Since 2021 personal tax allowance has been frozen at £12,570. This freeze was due to expire this year but the Chancellor of the Exchequer has extended it to 2031. We want to keep some more of our own money.

“If you are earning minimum wage then you may soon be paying tax because of fiscal drag. Some higher earners pay little or no tax due to clever use of accounting rules. We think this is so wrong.”

Then Chancellor Rachel Reeves extended the freeze to 2031 last November. Writing for the Institute for Fiscal Studies, Isaac Delestre said this month: “Had it been uprated in line with inflation since April 2021, the personal allowance would today stand at £16,070 – £3,500 higher than its actual level. By 2030-31, the gap between the personal allowance and where it would have been had it not been frozen will (under current inflation forecasts) reach £4,870. This represents a 22% real-terms reduction in the value of the personal allowance between 2021-22 and 2026-27, with a further 8% reduction expected by 2030-31.”

The Treasury has responded to the petition, firmly rejecting any calls to alter the basic tax rate of 20% above £12,570. Officials stated: “The Government currently has no plans to increase the Personal Allowance to £18,000. Increasing the Personal Allowance to £18,000 would come at a significant fiscal cost of over £40 billion per year.

“Raising the Personal Allowance to £18,000 would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on. A £40 billion cut in public services is equivalent to slashing roughly a fifth of the NHS Budget in England, or around two thirds of defence spending.

“The income tax system is highly progressive, with different rates of tax sitting above an internationally high Personal Allowance.

“The Government is making these fair and necessary choices on tax so it can deliver on the public’s priorities. Alongside this, the Government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system.”

Sign up to the petition, and read the full Treasury response here.