London Daily

Focus on the big picture.
Sunday, Sep 14, 2025

Rishi Sunak 'plotting £6,000,000,000 raid on personal tax allowances'

Rishi Sunak 'plotting £6,000,000,000 raid on personal tax allowances'

Rishi Sunak is considering freezing personal income tax allowances in next month’s Budget in a move that could cost the average family £250 per year, reports claim.

The Chancellor is said to be looking into abandoning the planned increases for the two lower tax thresholds, meaning millions of people will have to pay more in tax.

Thresholds determine how much a person’s income should be taxed and are typically expected to rise with inflation each year.

But according to The Telegraph, officials are interested in scrapping the planned increases to both the £12,500 and £50,000 thresholds in order to raise an extra £6 billion for the Treasury.

Such a move is often described as a ‘stealth tax’ because it allows revenue to be raised without increasing tax rates, meaning the risk of a voter backlash is reduced.

Workers can currently earn up to £12,500 a year without paying income tax – a figure forecast to rise to £13,250 by the 2024 election in line with inflation.



Anyone earning over £50,000 pays the higher income tax of 40%, and this is expected to increase to £53,000 by the time voters next go to the polls.

Freezing the thresholds would effectively cancel a planned tax relief, with the average family forecast to miss out on £250-a-year savings by the next election.

Sources told The Telegraph the policy will be announced on March 3, when the chancellor will unveil the next budget.

One Treasury source described the move as ‘quite logical’ but backbench Tory MPs are not expected to be as supportive with many previously warning the chancellor not to increase taxes.

Rishi Sunak will unveil his next budget on March 3, when the ‘stealth tax’ is expected to be announced


Mr Sunak has repeatedly stated that the Government will need to start balancing the books following record sums of borrowing during the pandemic.

Last year a Think Tank warned tax rises of more than £40 billion a year are ‘all but inevitable’ to protect Government debt from spiralling out of control.

Official figures today showed the UK economy shrank by a record 9.9% last year as coronavirus restrictions hit output.

Mr Sunak said this was comparable with other countries and said his March Budget would set the next stage of the Government’s economic response to the crisis.

When asked about the proposed ‘stealth tax’ a Treasury spokesman said: ‘We do not comment on future tax policy outside of fiscal events.’

Newsletter

Related Articles

0:00
0:00
Close
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
×