The Financial Times (FT) reported, citing the UK's Government officials, that chancellor Rachel Reeves is considering prolonging a freeze on income tax thresholds beyond 2028. The move could raise GBP7 billion a year and help cover a GBP40-billion fiscal gap.
The freeze was implemented in 2021 by the then-chancellor Rishi Sunak and is set to expire in 2028.
A source with knowledge of Reeves’s plans explained that the decision aligns with Labour’s tax pledges, which promised no increases in income tax rates.