UK Income Tax Threshold Freeze Extended to 2028
UK Chancellor Jeremy Hunt has announced the extension of the income tax threshold freeze until 2028, marking the biggest tax rise in 50 years. Both major parties have ruled out increases in VAT, income tax, and national insurance, potentially limiting future fiscal flexibility. Notably, economist Paul Johnson emphasized that tax burdens will rise even without rate hikes due to the ongoing threshold freeze.
Chancellor Jeremy Hunt has announced that the six-year income tax threshold freeze will continue until 2028, impacting millions of taxpayers.
This policy represents the UK's largest income tax rise in over 50 years.
Both the Conservative and Labour parties have declared they will not raise VAT, income tax, or national insurance, restricting future government's fiscal options.
The tax freeze follows pandemic and energy crises, with Hunt defending this decision on BBC Radio 4.
The shadow chief secretary to the Treasury, Darren Jones, indicated that Labour has no immediate plan to unfreeze tax thresholds.
Economic expert Paul Johnson highlighted that even without rate increases, tax burdens are set to rise due to frozen thresholds.
This policy represents the UK's largest income tax rise in over 50 years.
Both the Conservative and Labour parties have declared they will not raise VAT, income tax, or national insurance, restricting future government's fiscal options.
The tax freeze follows pandemic and energy crises, with Hunt defending this decision on BBC Radio 4.
The shadow chief secretary to the Treasury, Darren Jones, indicated that Labour has no immediate plan to unfreeze tax thresholds.
Economic expert Paul Johnson highlighted that even without rate increases, tax burdens are set to rise due to frozen thresholds.
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