Many workers will end up losing hundreds of pounds a year from their take-home pay if Chancellor Rachel Reeves goes ahead with mooted plans to cut income tax thresholds at this week’s Budget.

Until earlier this month, the Chancellor had been expected to raise rates of income tax in the face of a blackhole in her spending plans, but now she will no longer go ahead with this.

Instead, it has been suggested that she could look at adjusting the thresholds at which people pay the higher and additional rates of tax , which would also bring in more revenue.

Currently, people pay 20 per cent income tax and 8 per cent national insurance on earnings between £12,570 and £50,270.

They then pay 40 per cent income tax and 2 per cent national insurance on earnings between £50,270 and £125,140, an

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