Close Menu
WTX News
    Facebook X (Twitter) Instagram
    Trending
    • Verstappen secures Nordschleife permit: “Everything went smoothly”
    • Here’s the revised title without the site name, category, date, or full stops: Why Tommy Robinson rally was different to any other
    • Spurs 3-0 West Ham Game Analysis
    • Major star ‘gone from WWE’ 19 months after sensational return
    • Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him
    Facebook X (Twitter) Instagram YouTube
    WTX News
    • Live News
      • US News
      • EU News
      • UK News
      • Politics
      • COVID-19
      • Business
      • Tech zone
    • World news
      • Middle East News
        • UAE News
        • Palestine News
      • Europe
        • Italian News
        • Spanish News
      • Africa news
      • South America
      • North America
      • Asia
    • News Briefings
      • UK News Briefing
      • World News Briefing
      • Live Business News
    • Sports
      • Football News
      • Tennis
      • Women’s Football
    • MY World
      • Climate Change
      • In Review
      • Expose
      • Special Reports
        • Conscience Convoy
        • Rohingya Report
    • Entertainment
      • Insta Talk
      • Royal Family
      • Gaming News
      • TV Shows
      • Streaming
    • Lifestyle
      • Fitness
      • Fashion
      • Cooking recipes
      • Luxury
      • Money Saving Expert
    • Travel
      • Culture
      • Holidays
    • Sign Up
      • Log In
    WTX News
    • Live News
    • World news
    • News Briefings
    • Sports
    • MY World
    • Entertainment
    • Lifestyle
    • Travel
    • Sign Up
    Home - News Briefing - Budget start time: When is today’s Budget and what ‘stealth’ tax rise is set to be kept?
    News Briefing

    Budget start time: When is today’s Budget and what ‘stealth’ tax rise is set to be kept?

    By David Pike4 Mins Read
    Facebook Twitter LinkedIn Email Telegram WhatsApp
    Budget start time: When is today’s Budget and what ‘stealth’ tax rise is set to be kept?

    Budget start time: When is today’s Budget and what ‘stealth’ tax rise is set to be kept?

    Sign up for the View from Westminster email for expert analysis straight to your inbox

    Get our free View from Westminster email

    Labour is expected to extend an income tax measure that has been described as a “stealth tax” at the upcoming Budget as more people are set to pay higher rates.

    Officials have said Rachel Reeves is looking to extend the freeze on income tax thresholds, which has dragged millions of earners into paying higher rates of income tax since 2021.

    Experts predict the move could raise £7bn a year for the Exchequer – but has been criticised by some as an underhand way to raise tax. Some critics have claimed that doing so would break a central Labour manifesto pledge to “not increase taxes on working people.”

    However, responding to the reports, a government source told the Financial Times: “We said we would protect working people and not increase rates of income tax, national insurance or VAT.”

    Many have taken this to mean that the government would not consider extending the freeze as an income tax rise, as it would technically remain the same.

    Rachel Reeves will announce her budget on October 30 (Stefan Rousseau/PA) (PA Wire)

    Labour’s own criticism of the measure when it was introduced in 2021 would call this into question. Responding to its introduction, then-shadow chancellor Ms Reeves said: “People on average earnings are paying more in tax because they are dragged into higher tax brackets.

    “That is a sign of failure. The government is picking the pockets of working people,” she added.

    The income tax threshold freeze has been criticised as a way for the Treasury to boost revenue from income tax without increasing its rates. Since 2021, the personal allowance has been frozen at £12,570. This is the amount that can be paid before income tax deductions begin.

    The basic rate of 20 per cent is paid on earnings up to £37,700, the higher rate of 40 per cent on earnings up to £125,140, and the additional rate of 45 per cent on earnings over £125,141.

    Rather than increasing with inflation or average earnings as in previous years, these rates will all remain frozen until at least 2028. Labour’s latest plans now mean they could be held for even longer.

    Paul Johnson, director of the IFS (James Manning/PA) (PA Archive)

    The effect of this is what economists call “fiscal drag,” where more people are pulled into higher tax brackets as their earnings increase, but the thresholds stay the same.

    The respected Institute for Fiscal Studies (IFS) says these freezes will reduce household incomes by an average of £1,250 by 2025/26. Analysts also point out that the measure will take more from workers’ pockets than any of the recent drops in national insurance and income in recent years.

    While households began pulling back £20 billion a year from the Exchequer after these tax measures, they write that the income tax threshold freeze loses them £40 billion. This means that for every £1 the average household has gained in recent years, they have lost £2.

    It is estimated that continuing the measure will raise over £33.5 billion a year for the government by 2028/29, making it an attractive option for the chancellor ahead of the Budget on 30 October.

    Ms Reeves has also been criticised in recent weeks for reportedly exploring an increase in employer national insurance contributions. As with income tax threshold freezes, critics have said Labour is deploying language trickery to avoid accusations of breaking its manifesto pledges.

    When is the Budget 2024?

    The Budget speech will be delivered by Rachel Reeves at the House of Commons on Wednesday, 30 October.

    The schedule for the day is somewhat flexible, as Prime Minister’s Questions takes place first at 12pm. That should last around 30 minutes and will be followed by the Budget, with a short break likely to take place in between the two at the discretion of the Speaker, Sir Lindsay Hoyle.

    https://www.independent.co.uk/news/uk/politics/budget-2024-start-time-today-b2637967.html

    London news The Independent UK featured
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram WhatsApp
    Previous ArticleBudget 2024: What inheritance tax rise will mean for you
    Next Article Rescue efforts continue after deadly flash floods in Spain
    David Pike

    David Pike is an experienced news journalist with over 20 years experience as a UK News editor for WTX News and other news publications.

    Related Posts

    Here’s the revised title without the site name, category, date, or full stops:

Why Tommy Robinson rally was different to any other
    Birmingham news

    Here’s the revised title without the site name, category, date, or full stops: Why Tommy Robinson rally was different to any other

    Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him
    Politics

    Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him

    Sikh woman raped in ‘racially aggravated attack’ speaks out
    UK News

    Sikh woman raped in ‘racially aggravated attack’ speaks out

    China warns UK and US after USS Higgins and HMS Richmond sail through Taiwan Strait
    China

    China warns UK and US after USS Higgins and HMS Richmond sail through Taiwan Strait

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Advertisment
    News Headlines
    Here’s the revised title without the site name, category, date, or full stops:

Why Tommy Robinson rally was different to any other

    Here’s the revised title without the site name, category, date, or full stops: Why Tommy Robinson rally was different to any other

    Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him

    Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him

    Save 70% on VIP subscription
    News Briefings - the way to a better life
    News Briefings - the way to a better life
    Advert by Sponsors
    More from WTX News
    The latest gaming news - with game reviews and tips and tricks. updated 24 hours a day.
    The latest gaming news
    Hot off the press!
    • Verstappen secures Nordschleife permit: “Everything went smoothly” September 13, 2025
    • Here’s the revised title without the site name, category, date, or full stops: Why Tommy Robinson rally was different to any other September 13, 2025
    • Spurs 3-0 West Ham Game Analysis September 13, 2025
    • Major star ‘gone from WWE’ 19 months after sensational return September 13, 2025
    • Kemi Badenoch accuses Sir Keir Starmer of ‘lying’ about Peter Mandelson prior to sacking him September 13, 2025
    WTX News latest breaking news sports and travel
    Latest News and analysis - Deciphering through the BS with exclusive News Briefings
    Facebook X (Twitter) TikTok Instagram

    News

    • World News
    • UK News
    • US News
    • EU News
    • Business
    • Opinions
    • News Briefing
    • Live News

    Company

    • About WTX News
    • Register
    • Advertising
    • Work with us
    • Contact
    • Community
    • GDPR Policy
    • Privacy

    Services

    • Fitness for free
    • Insta Talk
    • How to guides
    • Climate Change
    • In Review
    • Expose
    • NEWS SUMMARY
    • Money Saving Expert

    News delivered to your inbox

    Copyright WTX News 2025

    • Privacy Policy
    • Terms

    Type above and press Enter to search. Press Esc to cancel.