Freezing tax thresholds

Motion Text

That this House notes with concern reports by the Taxpayers' Alliance that the freeze on Income Tax and National Insurance thresholds, if extended to 2029-30, will result in those on a median income paying £2,310 more in taxes compared to if thresholds had not been frozen in 2021-22 and if the secondary threshold for national insurance had not been cut; acknowledges their warning that National Insurance and Income Tax on the average earner will be 19 per cent higher by 2029-30 under such an extension, with those on the lowest incomes hit hardest proportionally and pensioners paying tax on the State Pension for the first time in 2027-28; further notes that other frozen thresholds, including ISAs, savings rates, and Inheritance Tax bands, are significantly lower than if they had risen with inflation; and calls on the Government to review the freeze on tax thresholds for future budgets.