Nick Clegg: Raising income tax threshold 'important to me'

Chancellor George Osborne could announce a significant further increase in personal tax allowances in the Budget, the BBC understands.

The threshold below which no-one pays income tax is to rise to £8,105 next month, but Whitehall sources suggested plans to lift it further were expected.

The Lib Dems have urged more help for low and average earners in tough times.

Deputy Prime Minister Nick Clegg said he wanted the Budget to relieve the tax burden on those on low and average incomes, many of whom were struggling.

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