Chancellor 'incredibly proud' of increase in tax allowance
19 March 2014 Last updated at 14:11 GMT
Chancellor George Osborne has announced tax changes for "low and middle income" workers in his latest Budget.
The amount people earn before tax will go up by £500 to £10,500 and the 40p tax threshold will go up.
Mr Osborne told MPs the move would mean the average tax payer would pay £800 less in tax and said, "Our increases in the personal allowance will have lifted over three million of the lowest paid out of income tax altogether and I am incredibly proud of what we have achieved."