US Edition
Keir Starmer Refuses to Rule Out Extending Tax-Band Freeze
UNITED KINGDOM, JUL 9 – Freezing tax thresholds since the 1980s is expected to pull 3.5 million more people into higher tax bands by 2028/29, raising billions without technically increasing tax rates.
- During recent parliamentary questioning, Sir Keir Starmer did not commit to ending the freeze on income tax thresholds after the current April 2028 deadline.
- The income tax personal allowance and higher-rate threshold have been frozen since 2021/22, a policy introduced under successive Conservative chancellors that caused fiscal drag by pushing more taxpayers into higher bands.
- The Office for Budget Responsibility estimated that freezing these thresholds until 2028/29 would raise £26 billion compared to inflation-adjusted increases, dragging 3.5 million more people into the 40% tax bracket by 2029.
- Finance experts warn that fiscal drag lowers the personal savings allowance, increasing tax liabilities for savers while potentially pushing pensioners into income tax on their state pensions, risking a 'retirement tax' without urgent government action.
- Extending the freeze could boost government revenue but may also increase tax burdens on working people and pensioners, highlighting growing pressure on fiscal policy ahead of future budgets.
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Total News Sources10
Leaning Left2Leaning Right2Center3Last UpdatedBias Distribution43% Center
Bias Distribution
- 43% of the sources are Center
43% Center
L 29%
C 43%
R 29%
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