The personal allowance will rise by £350 to £11,850 in its eighth year of continued growth and the higher rate threshold will increase by £1,350 to £45,000.

In 2018-19 a typical taxpayer will pay £1,075 less income tax than in 2010-11.

The basic rate limit will also be increased to £34,500 in 2018 to 2019. Since April 2017, the Scottish Parliament sets the basic rate limit for Scotland. Taken together, these changes will increase the higher rate threshold, above which individuals pay income tax at 40%, to £46,350 in 2018 to 2019.

The government is committed to raising the personal allowance to £12,500 and the higher rate threshold to £50,000 by 2020, meaning the personal allowance would have increased by 90% in the space of a decade.

The increases are based on the September 2017 Consumer Prices Index and will be introduced by statutory instrument later in 2017.

Over the previous eight years the personal allowance has grown by £5,372 from £6,475 in 2010-11 to £11,850 in 2018-19.

Iain McCluskey, tax partner at Pwc, said: 'The tax free personal allowance has increased by over 40% against inflation since 2010, removing the need for a considerable number of lower paid people to pay income tax.

'However, given the point at which national insurance is payable by employees starts at more than £3,000 below that of income tax,  the lowest paid taxpayers may reflect on whether a further raise in the personal allowance is the right way to support them.'