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The one thing the chancellor didn't mention that will affect your pay

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Core Development: The one thing the chancellor didn't mention that will affect your pay
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Market & Financial Impact: The point at which you start to pay tax, and the point where you tip into paying a higher rate of tax have been frozen for three more years.
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Actionable Insight: 🟢 Bullish Trigger: Positive business expansion or earnings beat may attract institutional and retail buying.

Income tax thresholds, which have been frozen under successive chancellors, are expected to start to rise again after 2031.

John Healey may not have mentioned this change in his Budget speech - after all, it is still some way off - but according to the documents released by the Office for Budget Responsibility (OBR) this policy, which has been shaving additional tax off people's take-home pay for the past five years, is scheduled to end.

The proportion of your income that is taken in tax will continue to go up over the next four years in line with decisions made in previous Budgets.

But then the personal allowance - the point at which you start to pay tax - and other thresholds, where you tip into paying a higher rate of tax, will rise again with inflation, meaning you keep more of what you earn.

Freezing thresholds is often dubbed a stealth tax because, unlike raising the headline rates, it is not as obvious on your payslip.

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Official Publisher Attribution: This report is aggregated from Bloomberg. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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