Households are being warned that recent tax cuts could be “slowly eliminated” due to Chancellor Jeremy Hunt’s freeze on allowances, experts have warned. In his Autumn Statement last year, Mr Hunt confirmed the National Insurance rate would be reduced from 12 to 10 per cent, affecting millions of employees from January. However, analysts have been warning the move has been undercut by fiscal drag, the term used to describe when taxpayers are dragged into higher tax brackets due to wages rising while allowances remain the same. During 2022 Autumn Statement, the Chancellor extended the ongoing fr…
