Income Tax
The question
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of freezing income tax thresholds on taxpayers.
Answered by Dan Tomlinson
The previous government froze income tax thresholds from 2021/22 until 2027/28 – this means they were not due to rise until April 2028 at the earliest.
The Government is asking everyone to contribute to maintain funding for the NHS and reduce debt, and it is doing this by maintaining personal tax thresholds at their current levels for a further three years to the end of this decade.
At Budget 2025, the Government published a Tax Information and Impact Note (TIIN) setting out the impact of maintaining income tax thresholds. This is available at: Maintaining Income Tax and equivalent National Insurance contributions thresholds until 5 April 2031 - GOV.UK
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