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Rachel Reeves's stealth tax raid will cost millions of workers £285 a year, it has been warned. Labour Party Chancellor Ms Reeves could raise an extra £10.4 billion if she extends the HMRC threshold freeze in November.

The average worker could see £285 wiped from their pay packet by the end of the decade under a shake-up from November as Ms Reeves prepares to deliver her fiscal statement.

The Chancellor is reportedly considering the stealth tax raid in her autumn Budget despite previously pledging to unfreeze thresholds by April 2028. The measure would leave 1.3 million taxpayers paying £285 more on average in tax by 2030, according to research by the House of Commons Library commissioned by the Liberal Democrats .

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