Sunak’s stealth tax, which will take £430 from hardworking Britons, threatens ‘years of tax increases.’

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As Sunak’s stealth tax takes £430 from hardworking Britons, ‘years of tax increases’ loom.

If Chancellor Rishi Sunak’s plans to freeze the personal tax allowance and raise the tax threshold go ahead, Britons will lose £430 per year.

The government’s secret tax raid will cost the average English and Welsh family £430 per year.

By 2026, the freeze will require an additional 1.5 million low-wage workers to pay income tax.

Struggling families are in for more bad news this week, as the government’s proposal to freeze the personal tax allowance is expected to be approved.

The decision to keep the personal tax allowance and higher rate tax threshold frozen until 2026 will save the Treasury £10.9 billion at the expense of millions of British families already struggling with rising living costs.

According to a new analysis by the House of Commons Library, the freeze will result in an additional 1.5 million low-wage workers being forced to pay income tax by 2026, with a further 1.25 million people falling into the higher-rate tax bracket.

The Liberal Democrats have demanded that the government abandon its planned tax raid, which they claim will “clobber families who are already feeling the pinch.”

According to regional data, the stealth tax will hit London and the South East the hardest, costing an average of £500 per household.

In 2026, an estimated 230,000 more people in the South East will be in the higher income tax bracket, with an additional 210,000 paying income tax, resulting in a £1.9 billion tax increase for taxpayers in the region.

Household disposable incomes will be 1% lower in 202526 in all regions than they would be if income tax thresholds were not frozen.

In real terms, this equates to a £430 loss for households.

“Boris Johnson must drop this unfair stealth tax, which will clobber families who are already feeling the pinch,” said Christine Jardine, the Liberal Democrat Treasury Spokesperson.

“This winter, people are concerned about rising living costs and paying bills.

“They now face years of tax increases under a Conservative government that treats them as second-class citizens.”

According to Andrew Tully, technical director at Canada Life, 1.2 million people will be forced into the 40p higher rate tax bracket, but they can take steps to avoid it.

Mr Tully stated the following:

“Brinkwire News Summary.”

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