Increase tax threshold, says Balls

Ed Balls has called for sharp increases in the income tax threshold in next month's Budget, increasing the pressure on Chancellor George Osborne to take dramatic action to kick start the economy.

Talking on "The Andrew Marr Show", the shadow Chancellor said: "We need some stimulus into our economy to get it moving."

His intervention will also aggravate Coalition tensions on the issue. Liberal Democrat David Laws will today urge Mr Osborne to move more swiftly towards a £10,000 personal tax allowance target.