Latest editorial
Households will lose money from ‘opaque and stealthy’ tax freezes
Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng (left) during a visit to a construction site for a medical innovation campus in Birmingham, on day three of the Conservative Party annual conference at the International Convention Centre in Birmingham
HOUSEHOLDS will lose more from “opaque and stealthy” tax allowance freezes over the next three years than they will gain from headline tax cuts on average, according to a new study.
The Institute for Fiscal Studies (IFS) found that by 2025–26, the freezes will take away £2 for every £1 given to households through the headline cuts in personal taxation.
It also said that the four-year freeze of the personal allowance means that, by 2025–26, the number of people paying income tax will rise to 35.4 million, an increase of about 1.4 million.
More from this author
ROGER McKENZIE explains how Ibrahim Traore has sparked the flames of hope across Africa, while the Western powers seek to extinguish all attempts to build true sovereignty in the long-exploited continent
