In her Budget today, the Chancellor will confirm that she is extending the tax threshold freeze by another three years until April 2031

Millions of workers will be dragged into paying more in tax with Rachel Reeves set to announce that she will extend the freeze on tax thresholds.

The income tax personal allowance - set at £12,570 - was meant to be frozen until April 2028. But in her Budget today, the Chancellor will confirm she is extending this freeze for another three years.

It means income tax thresholds will now be frozen until the end of the 2030/31 financial year. This news was confirmed in documents published ahead of the Budget by the Office for Budget Responsibility.

The freezing of tax brackets is known as fiscal drag, as more people are dragged into higher tax bracke

See Full Page