Measure
The government has confirmed its manifesto pledge that it will not increase the rates of income tax or national insurance (for individuals).
Additionally it will not extend a freeze on income tax and national insurance thresholds. The freeze will come to an end in April 2028, from which date these thresholds will once again be increased in line with inflation.
Individuals with income.
Inflationary increases to thresholds are scheduled to resume from the 2028/29 tax year.
An end to the current freeze on personal tax thresholds, which has been in place since the 2021/22 tax year, will be welcomed by many. Freezing thresholds gradually causes taxation to increase due to ‘fiscal drag’.