Tory MPs are pleading with Rishi to assist the 2.7 million people who are facing a tax hike.

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Tory MPs are pleading with Rishi to assist the 2.7 million people who are facing a tax rate hike.

Tory MPs are urging RISHI Sunak to “do more to ease the squeeze” after a warning that taxpayers will face a £10 billion-a-year tax hike.

Following the Chancellor’s decision to freeze the income tax thresholds, official figures released yesterday revealed that 1.2 million workers will be pushed into the 40% higher tax bracket by 2026.

According to data from the House of Commons Library, average households will have to pay an extra £430 in income tax per year by 2026 as a result of the measure.

It also revealed that nearly 1.5 million low-income people will be pushed into the 20% basic tax rate, which begins at £12,750.

The financial blow comes on top of rising living costs and growing Tory backbench discontent with tax hikes to pay for the Treasury’s response to the Covid pandemic – and to raise funds for the NHS and social care system.

John Redwood, a former Cabinet minister, warned yesterday that freezing income tax thresholds would be “another hit to living standards for aspiring people trying to improve their lives.”

“I’d like us to get back to raising income tax allowances,” he said.

In general, I believe that the cut to take-home pay in April will be too significant, and that they [ministers]must do more to alleviate the squeeze.”

Mr Redwood went on to say that scrapping the planned April National Insurance increase should be a top priority because it “clearly” violated the Conservative manifesto promise not to raise income tax.

The chairman of the Northern Research Group of Conservative MPs, Jake Berry, has urged the Chancellor to reconsider the freeze.

According to the House of Commons Library’s analysis, inflation and rising earnings will push an additional 1.2 million people into the higher rate tax bracket, which currently begins at £50,070.

By 2026, the threshold would have risen to £56,270 if the Chancellor scrapped his freeze and raised it in line with inflation.

According to the study, household disposable incomes will be 1% lower by 2026 in all regions than they would be if the freeze did not exist.

The worst-affected areas are expected to be London and the South-east, with household losses of around £500.

There will be 210,000 additional higher rate taxpayers in London alone.

“Brinkwire News Summary.”

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