Budget 25: Income tax thresholds freeze extended

The freeze extension was later confirmed in today's Budget by chancellor Rachel Reeves. More people will be brought into higher tax bands as wages rise as a result. The income tax personal allowance, the higher rate threshold and additional rate threshold are frozen at £12,570, £50,270 and £125,140, respectively, until 2030/31. Labour had made a manifesto pledge – that it would not increase income tax. Its 2024 election manifesto pledged not to raise the basic, higher, or additional rates of income tax, or National Insurance (NI). The earnings threshold at which workers and pension...