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Tax Threshold Freeze Could Earn Treasury £55bn Annually

4/29/2026

35 3 Full Breakdown

Summary

Story summary

The freeze on tax thresholds could raise £55 billion a year for the Treasury by 2031.
Over three million taxpayers moved into higher brackets in 2023-24.
324,000 entered the 45 p rate and 654,000 entered the 40 p rate.
£40,000 earners move toward the 40 p band and near-£100,000 earners cap pay to avoid a marginal rate above 60 percent.
The Treasury has not raised rates and offset pressures with a minimum wage increase and energy bills.

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Story summary

The freeze on tax thresholds could raise £55 billion a year for the Treasury by 2031.
Over three million taxpayers moved into higher brackets in 2023-24.
324,000 entered the 45 p rate and 654,000 entered the 40 p rate.
£40,000 earners move toward the 40 p band and near-£100,000 earners cap pay to avoid a marginal rate above 60 percent.
The Treasury has not raised rates and offset pressures with a minimum wage increase and energy bills.