Rachel Reeves presented her budget yesterday (Image: Bloomberg via Getty Images)

As the dust settles from Labour's budget , we can start to see its impact on a key issue: income tax . This is the largest component of the budget that will affect most people in Britain.

Announced on Wednesday, the freeze on income tax thresholds has been extended to the 2030-2031 tax year. This move is projected to raise £7.6 billion in revenue by 2030 and increase the number of taxpayers in the UK. It means that the current income tax bands will remain unchanged until April 2031 for taxpayers in England, Wales, and Northern Ireland.

In the past, these thresholds were adjusted annually in accordance with the Consumer Prices Index (CPI) inflation, thereby better reflecting the rising cost of liv

See Full Page