Budget 2025: How Rachel Reeves’ Income Tax Threshold Freeze Could Hit Your Pay Packet by 2030
Chancellor Rachel Reeves is expected to extend the freeze on income tax thresholds to April 2030 in her Autumn Budget, effectively raising taxes without changing rates. The Institute for Fiscal Studies estimates this move could generate an extra £8.3bn a year by 2029–30. Sky News projects four million more people will pay income tax and three million more will enter the higher 40% rate by 2028–29.