Budget 2024: Reeves considers income tax threshold freeze

Published On Oct 19, 2024, 12:50 AM

The article discusses a potential freeze on income tax thresholds that Labour’s Chancellor Rachel Reeves is considering as a way to raise funds in the upcoming budget. This move could bring an additional 400,000 people into the income tax system without increasing tax rates directly, thereby not breaching Labour's pledge not to raise taxes on working people. The government needs to find £40 billion to address a significant budget deficit and maintain public services. The implications of this freeze may lead to increased financial pressure on workers as their wages rise but do not adjust the income tax thresholds accordingly.