What happened: The chancellor has announced that the income tax thresholds, including the personal allowance and higher rate threshold, will remain frozen for an additional three years.
Why it matters:
- This means more people may pay higher taxes as wages rise but thresholds do not.
- Workers and taxpayers could see less take-home pay over time due to 'fiscal drag'.
MNN Take: Freezing tax thresholds effectively increases tax revenue without raising rates, impacting taxpayers as inflation and wages grow.
Sources: BBC News (Breaking)