More than half of London ’s full-time employees will be paying higher rate 40% income tax on their salaries by the time of the next election, analysis by the Standard has revealed.

The Chancellor’s decision to freeze income tax thresholds for another three years out to 2031 will hit the capital hardest with thousands of middle earners dragged into a bracket originally designed only for highly paid employees such as City bankers and company directors.

The extended freeze set to be announced in the Budget today means 40% income tax will continue to kick in at £50,270 for at least another six years.

But latest ONS data shows that the median full-time employee in London earned £46,414 this year. The median means that exactly half of the capital’s 2.3 million full time employees ear

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