Rachel Reeves’s decision to extend a freeze on income tax thresholds will cost middle-income workers up to £1,600 over the next six years, analysis shows.

The Chancellor’s Budget has prolonged the freeze, brought in by the previous Conservative government, from 2028 to 2031.

While the move does not technically break Labour’s manifesto not to increase taxes on “working people”, it has been dubbed a “stealth tax” because growing numbers of workers will be dragged into paying higher rates as their wages rise with inflation. New Feature

In Short

Quick Stories. Same trusted journalism.

The announcement means the average worker, who earns £39,900 a year, will pay an extra £620 in income tax and national insurance contributions (NICs) over the next five years, according to analysis fo

See Full Page