Chancellor Rachel Reeves this afternoon announced plans to extend the freeze on income tax thresholds in the budge . Experts have said this could result in individuals on the minimum wage paying an additional £759. Chancellor Rachel Reeves prolonged the freeze on income tax thresholds in her budget on Wednesday, a move that could generate at least £50 billion annually by the end of the decade.

And in a surprise move she announced the freeze would be increased to three years from 2028. These thresholds have remained unchanged by successive governments since 2021, leading to millions being ensnared in 'fiscal drag', meaning they're paying significantly more tax as a result. The thresholds dictate the amount people can earn before they start paying tax and are set at £12,570 for the lowest

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