Official announcement from the UK Treasury or government budget documents

Reeves to Uprate Tax Thresholds from 2028, Ending Expected Freeze Extension

Oct 30, 2024, 01:21 PM

Chancellor Rachel Reeves announced that the freeze on income tax and National Insurance thresholds will not be extended beyond the previous government's decisions. From 2028-29, personal tax thresholds will be uprated in line with inflation, contradicting previous reports that the freeze would continue until 2030. Reeves stated that "extending the threshold freeze would hurt working people," emphasizing the government's commitment to protect them. The decision is significant, as the extended freeze would have raised £7 billion by the end of the Parliament. The move is seen as a substantial boost for taxpayers who would have been affected by the extended freeze, which pushes more people into higher tax bands over time.