Overview
- The Chancellor extended the income tax threshold freeze to 2031 in the November Budget, lengthening it to a nine‑year policy.
- IFS calculations show someone earning £48,000 will pay £603.50 more by 2031, compared with £393.59 for an individual on £150,000.
- The watchdog estimates 5.2 million lower-paid workers will be brought into income tax and about 4.8 million people will move into the 40p higher rate.
- The freeze was assessed as the single largest revenue-raising measure in the Budget, according to the IFS.
- HM Treasury cites its distributional analysis indicating the top 10% lose most overall, while the Opposition brands the policy a stealth tax and highlights that Rachel Reeves previously ruled out an extension in 2024.