The personal allowance threshold will remain frozen for a further two years, continuing until 2028, along with the higher-rate threshold and the National Insurance contributions (NICs) thresholds.
Some are referring to this as a ‘stealth tax’ – where wage increases over time will cause people to find themselves caught in higher tax bands, potentially negating pay rises.
Richard Murphy, political economist, said: “The net effect of freezing tax allowances is that most people will pay more than £400 more in tax next year, and every year thereafter – putting the burden on those least able to afford it.”
