Rachel Reeves maintains Tory freeze on income tax thresholds until 2028 | Personal Finance | Finance [Video]

The Chancellor has announced that the Government will be maintaining the freeze on Income tax thresholds until 2028.

This move will see people pulled into paying higher rates through a process known as “fiscal drag”

Rachel Reeves made the announcement as part of her Budget earlier today, saying that she wanted to protect the money of working people by not extending the freeze beyond 2028.

Charlene Young, pensions and savings expert at AJ Bell previously described the decision to continue the tax threshold freeze as “tantamount to raising tax by the back door”.

She said: “It was a tactic used by the Conservatives to raise taxes on working households, with rising wages at a time of high inflation providing a super-charged stealth tax on earnings.

“The effect is muted somewhat when wage rises are lower, which is to be expected as inflation comes down, but it’s still an easy way …