The Local Economy Forum has praised today’s budget announcement, which includes a significant rise in the personal tax allowance to £17,000.
The forum described the decision as a long‑overdue correction after years of what it sees as insufficient adjustments.
Treasury Minister Chris Thomas MHK, who has been in for post just over three weeks, was commended for what the Forum called “swift and decisive action” to address what it views as a five‑year failure to keep personal tax thresholds in line with economic realities.
Economic Reality
According to the Forum, the increase will be particularly meaningful for lower‑income workers.
When combined with the government’s proposed 5% rise in the minimum wage, the group argues that take‑home pay for those on the lowest earnings will now be close to what it would have been had a previously discussed 10% minimum wage increase been implemented.
The Forum also highlighted broader concerns about the direction of public finances over the current administration.
It noted that annual income tax revenues have risen sharply from £250 million to £413 million, while the government wage bill has grown from £439 million to £605 million.
Despite this, the Forum said, the wider economy has “little more than flatlined,” and government reserves have continued to be drawn down.
Calling the situation “deeply serious,” the Local Economy Forum expressed hope that today’s tax decision signals a new willingness within government to confront long‑standing structural issues.
