Nigel Lawson: Cut taxes instead of raising personal allowances Speaking in Westminster yesterday after a meeting on independent taxation organised by Christian Action Research and Education, Lord Lawson said: "Raising the personal allowance is massively expensive. For the same amount of money you could look at reducing the rate of tax. That should be part of the objective of a future Chancellor. He suggested that the married tax allowance, under which married couples will be given tax breaks worth up to £200 a year, should be increased. The allowance is one of David Cameron's flagship policies ahead of the General Election in 2015 and is intended to recognise and bolster the institution of marriage It will let stay-at-home mothers transfer £1,000 allowance to their spouse, boosting the family's income by up to £200 a year. Lord Lawson suggested that the allowance should be "fully transferable," which would let stay-at-home mothers transfer the entire of their £10,000 allowance to their spouse. Lord Lawson said: "I am in favour of a fully transferable allowance. I think the trade off [is] between raising the threshold of the personal allowance or doing something on this. I would hope that it [the allowance] would be enlarged over time particularly as the government's fiscal constraints should be less pressing. He also said that the married tax allowance proposed by Mr Cameron must be implemented before the next General Election. He said: "Having been announced now this should be legislated for and up and running at the earliest possible moment in particular during this Parliament. If people are not already receiving the benefits of it, then it is much easier for another government to take it away.