The Resolution Foundation cautions that this "stealth tax" disproportionately impacts working households (Image: monkeybusinessimages via Getty Images)

Millions of low-to-middle income earners face being quietly stung by increased taxes in the Chancellor's Budget, new analysis cautions today. Estimates by the Resolution Foundation suggest that workers earning under £35,000 a year could lose £150–£200 a year in take‑home pay due to the decision to freeze income‑tax thresholds for a further three years from 2028 through to 2031.

The think tank argues the financial blow will be more severe than if Rachel Reeves had chosen to add 1p to the basic income tax rate. The threshold freeze maintains the personal allowance at £12,570 before Brits begin paying 20% income tax through to 2031. Simult

See Full Page