Overview
- Multiple outlets report the Chancellor has abandoned a planned increase in the main income tax rates after improved OBR forecasts.
- Extending the income tax threshold freeze to 2030 is reported to raise about £8–£8.3bn a year, with IFS analysis pointing to 790,000 more people entering the 40% band and roughly 10.1 million higher‑rate taxpayers overall.
- Treasury plans under discussion include revaluing around 2.4 million properties in council tax bands F–H and applying a separate surcharge to roughly 300,000 of the most valuable homes, a move expected to raise about £600m and to hit London and the South East hardest.
- Officials are said to be finalising a package of smaller measures such as limits on salary‑sacrifice pension relief, new charges affecting electric vehicles, higher gambling duties and other targeted levies.
- Government borrowing costs rose on Friday during a sell‑off in gilts linked to the shifting plans, with partial stabilisation later reported as political debate intensified ahead of the Budget.