Wed, 09 Jul 2025

Wed, 09 Jul 2025 Starmer refuses to rule out freeze on tax thresholds

The freeze means people risk being dragged into a higher tax band if they get a pay rise.
The extension of the freeze until 2029/30 could raise an estimated £7bn a year. Chancellor Rachel Reeves had pledged to lift thresholds in line with inflation from 2028/29, but her comments were dismissed by Labour as "pre-Budget" speculation. Conservative leader Kemi Badenoch accused Sir Keir of flirting with the idea of a wealth tax, which could raise £24bn per year. However, critics argue that such a move would see wealthy individuals leave the country and is opposed to the government's fiscal rules. In response to Badenoch's accusations, Sir Keir said Labour had stabilized the economy and "don't need lessons" from the Conservatives.
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