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Tax Freeze Could Hit 1.3 Million with Stealth Tax

11/25/2025

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Story summary
  • If Chancellor Rachel Reeves freezes the income tax threshold again, 1.3 million more people in the UK will face the higher 40p rate, which critics call a stealth tax.
  • The Liberal Democrats say the policy would lift higher-rate taxpayers to 9 million by 2029-30, costing £55.9 billion annually.
  • Reeves will maintain the triple lock on state pensions, increasing pensions by £550 for 13 million pensioners.