Chancellor Rachel Reeves announces the freeze on income tax and national insurance thresholds, put in place by the previous government, will not be extended.
She says a continuation would ‘take more money out of working people’s payslips', but confirms personal tax thresholds will be updated in line with inflation in 2028. Report by Alibhaiz. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
She says a continuation would ‘take more money out of working people’s payslips', but confirms personal tax thresholds will be updated in line with inflation in 2028. Report by Alibhaiz. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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NewsTranscript
00:00This year's Government froze income tax and national insurance thresholds in 2021,
00:06and then they did so again after the mini-budget. Extending their threshold freeze for a further
00:12two years raises billions of pounds, money to deal with the black hole in our public
00:17finances and repair our public services. Having considered this issue closely, I have come
00:24to the conclusion that extending the threshold freeze would hurt working people. It would
00:30take more money out of their pay slips. I am keeping every single promise on tax that
00:36I made in our manifesto, so there will be no extension of the freeze in income tax and
00:43national insurance thresholds beyond the decisions by the previous Government. From 2028-29,
00:50national tax thresholds will be uprated in line with inflation once again. When it comes
00:58to choices on tax, this Government chooses to protect working people every single time.