Sir Keir Starmer has hesitated to confirm plans to lift the freeze on National Insurance and income tax thresholds, scheduled to end in April 2028. This freeze, implemented by the Conservatives, has left millions liable for higher tax rates, especially if they receive pay increases. Economists anticipate tax hikes in light of changing government spending strategies. Chancellor Rachel Reeves previously indicated that breaking from the freeze could be detrimental to working individuals, yet Starmer has reiterated his adherence to Labour's manifesto without explicitly addressing the tax thresholds.
The freeze on National Insurance (NI) and income tax thresholds, introduced under the Conservatives, is currently due to end in April 2028 and affects millions of people.
Tax thresholds typically increased every year in line with inflation; however, they have been frozen since 2021/22, risking higher taxes for those receiving pay rises.
Sir Keir Starmer did not rule out continuing the freeze on tax thresholds during Prime Minister's Questions, despite previous commitments not to raise NI, income tax, or VAT.
Extending the freeze could generate an estimated £7 billion annually, leading to significant concerns about its impact on working people and government spending plans.
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