By Jonathan Davies

Future increases in the personal tax allowance will track national minimum wage, the government has announced.

The legislation, announced in the Queen's Speech, is likely to see the income tax allowance rise much faster than inflation.

Minimum wage will rise 3% in October, the biggest real-terms rise in seven years, and the Chancellor George Osborne says it will rise from £6.50 to £8 by 2020. In that time, the personal tax allowance will rise from £10,600 to £12,500.

It means that anyone working 30 hours a week on minimum wage will not pay any tax.