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Martin Lewis Issues Warnings to People with £10,000 Saved After Budget
Extending the income tax threshold freeze could pull 1.3 million more UK taxpayers into higher rates, raising an estimated £55.9 billion annually by 2029/30, experts say.
- On November 26th, Chancellor Rachel Reeves will unveil her Budget, with a freeze extension possibly pulling 1.3 million United Kingdom taxpayers into higher income tax thresholds.
- The Conservative government began freezing income tax thresholds in 2021, causing fiscal drag as wages rise but thresholds stay fixed until at least 2028.
- The IFS estimates freezes to thresholds would raise about �39 billion a year by 2029-30, with the full cost likely exceeding �50 billion annually, if extended.
- Pensioners and low earners stand to see immediate take-home pay impacts, as the Institute for Fiscal Studies says minimum wage workers face £759 more tax annually by 2030 and rising state pensions risk taxing some pensioners.
- The Lib Dems revealed the modelling using House of Commons Library figures after last year the Chancellor declined to extend the freeze and Sir Keir Starmer refused to rule out further freezes at Wednesday's Budget.
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Chronicle Live+2 Reposted by 2 other sources
‘Stealth tax’ concerns as 1.3m more people could pay higher income tax rate after Budget
A single announcement in the Budget could leave over a million more Brits facing a 40% income tax rate
·Newcastle upon Tyne, United Kingdom
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Coverage Details
Total News Sources8
Leaning Left1Leaning Right0Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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