The Conservatives plan to raise personal allowance to £12,500

The Tories are drawing up plans to raise the personal allowance to £12,500 as an election promise in 2015, according to reports.

The Financial Times reported that senior Tory politicians have been working on the plans which they claimed would have a bigger impact than freezing energy bills or rail fares.

The move would also ensure the Conservatives were not outdone by their coalition partners the Lib Dems, who plan to make a £12,500 tax threshold central to their tax policy.

The personal allowance is set to rise to £10,000 from April 2014. It was originally scheduled to hit £10,000 by 2015, but chancellor George Osborne brought the move forward by a year at the last budget.