Rishi Sunak’s stealth tax to cost middle earners £3,500

Rishi Sunak – Millions of middle earners will be more than £3,500 poorer because of plans by Rishi Sunak for a stealth raid on income tax that will last at least six years, an analysis for The Times has shown.

The prime minister and Jeremy Hunt, the chancellor, are thought to have agreed to extend until 2028 a freeze on income tax thresholds that had been due to end two years earlier. The agreement came at a meeting on Monday to discuss how to plug the £35 billion gap in public finances.

Prime minister and chancellor thought to have agreed to extend until 2028 a freeze on income tax thresholds. The agreement came at a meeting on Monday to discuss how to plug the �35 billion gap in public finances. Freezing tax thresholds drags more workers into paying more tax every year because a greater share of their wages are pushed into higher brackets.

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Thousands more earners will be dragged into higher tax brackets, which won’t rise in line with inflation.

Middle earners on £50,000 could be around £3,500 poorer, according to research from Blick Rothenberg.

The plans could rake in an extra £5billion a year for the Chancellor.

Yesterday the PM’s press secretary admitted that all of Mr Sunak’s summer leadership vows are now up for review thanks to the dire state of the economy.

They said: “We are looking at all the campaign pledges and we are looking at whether it is the right time to take them forward.

“We need to take some time to make sure what is deliverable and what is possible.

“Obviously those are pledges that were made a few months ago now.

“The context, particularly economically, has changed significantly since that time.”

Source – https://www.thesun.co.uk/