Overview
- The Office for Budget Responsibility projects 4.2 million more people will pay income tax by 2030, with 3.5 million moving into higher or additional-rate bands.
- Centre for Policy Studies analysis finds a worker earning around £50,000 could be more than £500 worse off in real terms over five years despite pay rises.
- Pensioners and many benefit recipients are set to gain in real terms through the state pension triple lock, additional protections for some retirees, and inflation-linked universal credit uplifts.
- Scheduled measures include higher dividend tax and reduced venture capital trust relief from April 2026, a new vaping duty from October 2026, and increased taxes on savings and property income from April 2027.
- Households also face council tax increases of up to 5% a year and staged withdrawal of the 5p fuel duty cut from September, as the Treasury defends the package by citing wage rises and energy bill support.