The Resolution Foundation has warned that already announced measures will increase the total tax take by about 23bn a year by 2028-29. Freezing existing tax rates increases revenue for the Treasury, pulling more people into the higher-rate tax band.
Income tax thresholds have been frozen since 2022 and are expected to remain so until April 2028. The share of taxpayers paying a higher marginal rate of 40% or more has risen significantly, affecting 3 million more people.
Despite some middle-income earners benefitting from current cuts, the Treasury is experiencing a historic high in tax revenue due to corporate tax increases and higher earner taxes.
Collection
[
|
...
]