Prime Minister Sir Keir Starmer has broken his silence on potential changes to income tax thresholds, refusing to rule out a freeze during his final Prime Minister's Questions before next week's crucial Autumn Budget.
PMQs Clash Over Tax Plans
The Labour leader faced intense questioning from Conservative leader Kemi Badenoch during Wednesday's session in the House of Commons. Mrs Badenoch accused the government of creating "Budget chaos" that was causing "real anxiety" among businesses and homeowners.
When directly challenged on whether he would rule out freezing income tax thresholds, Sir Keir responded: "The Budget is one week today and we will lay out our plans." He emphasised his commitment to "protecting the NHS and public services" while avoiding both "austerity" and "a borrowing spree like Liz Truss did."
Conservative Criticism Mounts
The opposition leader didn't hold back in her assessment of the government's pre-Budget positioning. Mrs Badenoch labelled the situation as "the first to unravel before it's even been delivered" and accused ministers of "government by guesswork."
She highlighted recent confusion surrounding the Chancellor's announcements, noting: "Two weeks ago, the Chancellor called a ridiculous press conference to blame everyone else for her having to raise income tax. Then last week, she U-turned on her own U-turn instead."
What Current Tax Bands Mean for You
The potential freeze comes at a time when many households are already feeling financial pressure. The current personal allowance remains at £12,570, meaning most people pay no income tax on earnings up to this amount.
Beyond this threshold, the basic rate of 20% applies to income up to £50,270, while higher earners face a 40% rate on earnings up to £125,140. Those earning above this level pay the additional rate of 45%.
It's important to note that the standard Personal Allowance reduces by £1 for every £2 earned over £100,000, meaning individuals with income exceeding £125,140 receive no Personal Allowance at all.
With the Autumn Budget scheduled for next week, millions of taxpayers across the UK await clarification on whether these thresholds will remain frozen, potentially dragging more people into higher tax brackets as wages increase with inflation.
