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Lowering and freezing income tax thresholds would make a worker earning £44,000 as much as £3,000 worse off, as the Treasury appears to have ruled out an income tax rise in the 26 November Budget.

Analysis from Quilter has revealed that extending the current freeze alone would add an extra £843 tax bill to middle earners over the next four years.

This compounds existing worries that extending the freeze on thresholds would hit higher earners, with workers on middle incomes also taking the hit.

An extension would deepen the ‘fiscal drag’ , with thresholds for income tax drifting further from rates of inflation.

The current freeze on income tax thresholds has been in place since 2021, back when Rishi Sunak was Chancellor and inflatio

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