Overview

• Treasury insiders say extending the current income tax threshold freeze beyond 2028, potentially to 2030, is under active consideration ahead of the autumn fiscal statement.
• Official projections cited in the reporting indicate 4.1 million more people would move into the 40% or 45% bands by 2027–28 if the freeze continues.
• Rathbones estimates that a worker earning £35,000 in 2022 would pay about £926 more per year by 2030, with increases of roughly £4,632 on £50,000, £5,635 on £80,000 and £7,077 on £100,000.
• The Treasury says it remains committed to keeping taxes for working people as low as possible and has not raised the basic, higher or additional rates of income tax, employee National Insurance, or VAT.
• Analysts describe the policy as fiscal drag and note other frozen thresholds, including capital gains, dividend and inheritance tax, with Hargreaves Lansdown citing early estimates of £89.2 billion in extra earnings-related tax this year.