Health Secretary, Wes Streeting, has indicated that the upcoming budget will involve tough decisions, including the potential extension of the freeze on income tax thresholds.
In an interview with Streeting highlighted the difficult choices the government will face in trying to stabilise the economy, admitting that while they cannot "fix 14 years in one budget," they aim to address fundamental issues to build a better future.
Chancellor Rachel Reeves is expected to extend the current freeze on income tax thresholds by an additional two years, moving the end date to 2030, following the previous Conservative government's freeze until 2028. This would mean income tax thresholds would not rise with inflation, likely pushing many taxpayers into higher tax brackets.
Streeting acknowledged that these decisions are not ideal but emphasized their necessity to avoid even greater long-term costs. This signals the government’s intent to continue its focus on stabilising public finances, even as it faces criticism for potentially increasing the tax burden on households.
Source:
Sky news
Image:
Yahoo News UK
