Rachel Reeves is expected to extend a stealth freeze on income tax thresholds beyond 2028, aiming to raise billions to address a 40bn public finance shortfall.
The policy, known as fiscal drag, does not raise income tax rates but causes workers to pay more as salary increases push them into higher tax brackets.
Criticism from Conservatives suggests that extending the freeze on income tax thresholds breaches Labour's manifesto pledge against raising taxes on working people.
Keir Starmer stated that Labour will adhere to manifesto pledges but did not confirm if the freeze on income tax thresholds constitutes a breach.
Collection
[
|
...
]