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Rachel Reeves Budget: 15 Key Measures From Tax Changes to Minimum Wage Rise
The freeze pulls nearly 4 million more taxpayers into higher bands by 2028-29, potentially raising about £42.9 billion annually, the Office for Budget Responsibility estimates.
- On Wednesday, the Chancellor extended the freeze on income tax thresholds to 2030, increasing UK government receipts by about £8bn as part of the Budget.
- The Conservative government began freezing thresholds in 2021, halting CPI uprating and causing fiscal drag as the OBR forecasts nearly four million more people will pay tax by 2028-29.
- Projections indicate revenue could reach about £3.2 billion by 2027/28 and £3 billion by 2029-30 , roughly comparable to a 3.5 percentage points rate increase.
- Middle earners risk being pushed into higher-rate bands, with a typical �40,000 earner affected, while pensioners receiving the full state pension may face a minimum �58 tax charge this year.
- Scotland will not be affected because the Scottish government sets income tax bands, while some revenue—about �3.2billion—could target child poverty and Labour opposed freezing beyond 2028.
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Budget 2025: Stealth tax raid from Rachel Reeves CONFIRMED income tax thresholds to remain frozen until 2030
Chancellor Rachel Reeves will keep tax thresholds frozen until at least 2030 in a move considered a stealth tax raid by many economists, according to the leaked assessment of her statement from the Office for Budget Responsibility (OBR)
·London, United Kingdom
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Budget 2025: What is a freeze on income tax thresholds - and will you pay more?
Chancellors can raise lots more income tax without actually increasing headline rates. The Conservatives began the practice in 2021, Labour have continued it, and are expected to extend it further today. This is how it works.
·United Kingdom
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Total News Sources11
Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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