The rabbit-in-the-hat of Rachel Reeves’ Budget was the end of Britain’s biggest stealth tax, but beneath it lay a new stealth tax that will raise tens of billions from employees.
In the 2022 Autumn Statement, Jeremy Hunt committed to keep the thresholds at which people begin paying tax frozen until 2027-28, using the wage growth stimulated by inflation to push millions of people into paying higher rates of tax. The Office for Budget Responsibility said the freeze would be equivalent to a 4p increase in income tax.
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