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Reeves Drops Income Tax Rise as Budget Focus Shifts to Threshold Freeze and Property Levy

Critics warn the pivot to stealth measures will hit London and the South East hardest.

Overview

  • Reports say the Chancellor will extend the freeze on income tax thresholds to 2030, raising about £8bn a year and pushing higher‑rate taxpayers to roughly 10.1 million.
  • The Treasury is said to be preparing to revalue about 2.4 million Band F–H homes and apply a separate surcharge to around 300,000 of the most valuable properties, with implementation unlikely before 2028.
  • The property plan would fall most on London and the South East, with many Band F households facing hundreds of pounds extra and some top‑band homes paying thousands.
  • Officials are exploring a smorgasbord of smaller revenue measures, including limits on salary sacrifice schemes and new charges for electric vehicles, with the Budget set for 26 November.
  • Separately, the IPPR has proposed raising council tax by 50% on Bands F and G and 100% on Band H to raise about £3.9bn and fund cuts for most lower‑band households.