Rachel Reeves is expected to extend the freeze on income tax thresholds beyond 2028 in the upcoming Budget pushing thousands more Britons into higher tax brackets. This move could potentially raise £7bn annually for the Treasury. The policy, known as fiscal drag, would continue a measure first introduced by former Chancellor Rishi Sunak in 2021. It is set to impact hundreds of thousands of workers across the nation. As salaries rise with inflation, more Britons will be pushed into higher tax brackets. This stealth tax has become a contentious issue, particularly in light of Labour’s manifesto …
