Currently, the level at which earners start paying income tax is £7,475, with the government looking to raise it to £8,105 this year; with the promise of raising the threshold to £10,000 by the next election which is set for 2015.
However, Nick Clegg has argued that many families are already at financial boiling point and need more relief.
During a speech to the Resolution Foundation think tank, Mr Clegg will call for urgent reforms to the tax system so that it rewards ordinary taxpayers and helps drive growth.
Mr Clegg is set to tell the think tank: “These families cannot be made to wait. Household budgets are approaching a state of emergency, and the Government needs a rapid response.
“These families have seen their earnings in relative decline for a decade, compared to those at the top. That has accelerated since 2008, with lower real wages and fewer hours at work.
“Every politician now has a simple choice: do you support a tax system that rewards the hard-working many? Or do you back taxes that favour the wealthy few?
"There is now an urgent need to give families more help, an urgent need to rebalance our tax system so it rewards work and encourages ordinary people to drive growth."
Nick Clegg’s call to the government comes following news that the economy shrank by 0.2 per cent in the last three months of 2011.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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