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Income Tax Thresholds: How the Chancellor Just Took a Chunk Out of Your Future Pay
The tax threshold freeze will raise £8 billion, affecting 780,000 more taxpayers and increasing Barnett funding for Northern Ireland by £370 million, the UK Treasury said.
- On Wednesday, Chancellor Rachel Reeves announced in the House of Commons the extension of the income tax threshold freeze to the end of the 2030-31 financial year.
- Freezing thresholds causes fiscal drag as wage inflation in recent years draws about a million people above 12,570, making more income taxable.
- Wage inflation is projected to push 780,000 into the 20% basic rate, 780,000 into the 40% higher rate, and 4,000 into the 45% additional rate by 2031.
- The Treasury confirmed �370m, including �240m resource and �130m capital funding, will be provided to the Northern Ireland Executive on Wednesday, with John O'Dowd expected to outline his assessment.
- Over a decade, officials say frozen thresholds will raise £56bn total, with £12bn from the three-year extension, while the Budget leaks and Office for Budget Responsibility early release intensified controversy.
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One in four taxpayers in the UK will pay more tax in the coming years as Chancellor of the Exchequer Rachel Reeves’ second budget freezes tax brackets. Response – London Freezing tax brackets until 2031 The freeze on tax brackets until 2031 will bring in around £8 billion more in revenue and will put a particular strain on the middle class: for a typical family, the burden could reach up to £1,600 a year. Taxes on dividends, savings and property…
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Total News Sources13
Leaning Left1Leaning Right1Center1Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
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