Nick Clegg calls for £10,000 income tax allowance

Deputy prime minister Nick Clegg is calling on Chancellor George Osborne to introduce a £10,000 personal allowance on income tax in the UK as part of new measures designed to ease the current financial pressures being applied to household budgets.

The proposal came as part of a speech to the Resolution Foundation think tank on 26 January, with Mr Clegg also noting that the current tax system is in need of reform."Only by changing the rules around tax in the UK, can we enjoy a system that rewards work and encourages ordinary people to drive growth".

In particular, Mr Clegg demanded changes that promoted fairness over avoidance. "The UK's tax system cannot go on like this, with those at the top claiming the reliefs, enjoying the allowances, paying other people to find the loopholes, while everyone else pays through the nose," he said.

The Liberal Democrat leader previously ran for election off the back of a manifesto that promised to raise the income tax personal allowance to £10,000. Any final decision is likely to rest in the hands of Chancellor George Osborne though, despite Mr Clegg calling for an immediate change.