1.8m people to pay more income tax as overall burden hits all-time high
1.8m people to pay more income tax as overall burden hits all-time high
Posted by theipaper
1.8m people to pay more income tax as overall burden hits all-time high
1.8m people to pay more income tax as overall burden hits all-time high
Posted by theipaper
24 comments
Rachel Reeves used her Budget to [ramp up taxes](https://inews.co.uk/inews-lifestyle/money/what-budget-means-money-key-policies-4055397?ico=in-line_link) on workers, savers, drivers and landlords in order to spend more on benefits – with more than 10 million people now now paying higher income tax thanks to years of stealth increases.
The Chancellor [increased tax by a total of £26bn](https://inews.co.uk/news/politics/mansion-tax-7-5k-a-year-homes-worth-2m-4054840?ico=in-line_link) and pledged to spend another £11bn, mostly on welfare measures including the end of the two-child benefits cap. The overall tax burden will hit its highest level on record by 2031, at more than 38 per cent of GDP.
The tax raid was intended to minimise the risk that she will again face a black hole in the public finances in future – although she admitted she could not rule out [increasing taxes next year](https://inews.co.uk/news/how-reevess-stealth-tax-will-cost-middle-earners-1600-by-2031-4054829?ico=in-line_link).
Speaking to Labour MPs on Wednesday evening, Reeves said: “Let me say what we achieved today. I said that I wanted this to be a Budget that cut the cost of living, cut NHS waiting lists, and cut the debt and the borrowing – and we’ve achieved all of those.”
The Budget’s single biggest move was to extend the freeze to the threshold at which people [start to pay the basic, higher and additional rates of income tax](https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/budget-pension-retirees-tax-2030-4064958?ico=in-line_link), which are supposed to rise each year in line with inflation but have been stuck at the same level since 2022 and will not now increase until 2031.
According to the Office for Budget Responsibility (OBR), there will be 5.2 million people paying income tax who would not have done without the freeze, plus 4.8 million dragged into the 40p higher rate and 600,000 into the 45p additional rate.
The Chancellor chose to keep the freeze until 2028 in last year’s Budget and has now extended it until 2031. This means that since Labour took office an extra 3.6m people in total will have been dragged into paying tax for the first time, or paying more tax. An extra 1.8m will be dragged into more tax in the three extra years she has now frozen the thresholds for, between 2028 and 2031.
If you and your other half are looking forward to getting up early tomorrow morning to go to work to pay even MORE tax to fund even MORE welfare spending, you may be interested to know…
There are 440,000 low income families who will now be eligible for an extra £3,500 a year from taxpayers for EACH child they have above 2 kids. Some have six or more kids.
Of those families, 180,000 have NO parents in work while just 46,000 have BOTH parents in work, many of whom work only part-time.
So don’t forget to enjoy your alarm clock going off tomorrow!
Everybody working should pay some level of income tax.
Absolute disgrace, Reeves will be gone in a year. Totally ruined goodwill gained for Labour. To also say working people have to pay more while this government allows benefit cheats to prosper, millionaires to flaunt the system and ridiculous claims payments for people whose conditions do not warrant to colossal amount they receive is a kick in the nuts basically! How can £50,000 be a higher earner these days, it is just not fair and goes again the Labour principles!!
A budget for the work shy and those that choose a benefits lifestyle.
I guess labour need to get their votes from somewhere, now all the working class have realised they are getting bent over.
Nice to know my increased contributions will help some feckless twat afford his packet of fags and several trips to benidorm.
I mean just what’s the point in working lmao.
It’s so bad that the people working etc can’t afford to have kids meanwhile those that don’t are the ones who are birthing the next generation.
From cutting welfare costs last year, to increasing them this year. Labour have no clear aim or actual consistent economic policy.
The fact that some people out there, don’t work in the slightest, yet are so much better off than people working, or them themselves actually working, is shocking. Removing the 2 child benefit cap is bonkers. There are other ways to help children in poverty than giving the parent(s), more money which will most likely go to the increased prices of milkshakes, ultra processed foods, and snazzy expensive clothing and not on education.
Couple this with minimum wage increasing next year. Yet she extended the time for income tax minimum. That means even more tax for people. YAYYYY!!!
BUT DON’T WORRY, she’s a working class gal. Struggling through like the rest of us, on about £160k per annum.
(And don’t get me started on the ISA pensioners).
So many people getting upset about anecotes thst barely exist, meanwhile the rich avoid paying their fair share. How much tax did amazon not pay again?
Blaming the working classes for tax hikes while they give us mass immigration and corporate sponsorship.
Our next government will feature reform not because people support their policies but because people want real change.
That’s why people would rather not work, get themselves on UC, PIP, child benefit the whole lot and a family of 4 can get £36k+ a year. And oh, no discrimination to benefit claimants under the Renters Right Bill so come on get them live in your property and pay that extra 2% she wants, don’t forget to save a few grands to upgrade the house as the new EPC requirement is coming up. Working hard, invest and repeat is a stupid choice in this country it seems.
She tax in the name of lifting child poverty but in such a lazy fashion I am speechless. Good intention, bad execution.
Well, the rise in corporations tax, the closing of the LLP loopholes, stopping exporting profit to low tax countries, the equal tax treatment for earned and unearned income and the taxing of wealth levelled things up considerably
I mean technically from the budget nobody is paying more income tax until 2028 but yeah, a decade of frozen thresholds ain’t great
Welcome to Labour. We take off everyone to give to people on welfare
More poor people without ways of establishing reasons to not give them rooms, let alone homes of the quality and standards expected 70 years ago due to privatising the property market and not regulating it, and then prioritising allocation to foreign baby production units to be exploited by modern liberals who hate everything that came from yesterday but pretend they are egalitarians because… because.
More minimum wage earners across all skills who imbeciles call unproductive although they are the flexible end server of the absolute shit that the elite are demanding on a never ending scale of middle class demand and whim.
And the absolutely dickhead notion that raising the minimum wage is a cause not result of people attempting to exist within the deeply extractive economy of rent payers being the primary earning force of their small time landlords.
I do hope that people realise just how far standards have fallen since even the late 1930s as to what homes, warmth, space, quality of life, child rearing, public healthcare, security, political representation, social contract relations, the notion of neighborhood, community, national admmini reach and protect actually means.
They actually genuinely used to be obliged to give a shit about your interests, future, health, wealth and growth.
This is no longer the case. You are the problem. Not the solution. This was not always so.
Labour not cutting welfares are attacked by media and the right
Labour cutting welfares or thinking of doing do are attacked by said media and the left
Ok.
According to calculators i’ll be £138.94 worse off per year, but that’s also not counting what i’ll loose from the ISA change as I will not be gambling on the stock market with my savings as the chancellor would like me to.
So where is it being invested?
Or is it just being put to handouts.
Something feels structurally broken when taxes go up despite services having being decimated over the last decade.
Where’s all that money gone?
The tories were bad, but fuck me at least they were consistent. This lot are just pissing in the wind, except the wind is blowing across the UK covering 80 million people in piss.
If you voted to leave the EU, and/or you voted for austerity, this is on you.
What is the point of a manifesto
Slaves of a sort.
I am in despair reading these comments, praying they’re bots. The budget comes out, the *rich people who control the country* strip more money from the middle class to pay for *benefits that said rich people are responsible for creating the need for* and then SOMEHOW you manage to see that and BLAME THE POOR CUNTS ON WELFARE?????????????????
HELLO??? ARE YOU INSANE??? THE PROBLEM IS THE RICH PEOPLE WHO CONTROL THE COUNTRY NOT THE RANDOM CUNT ON MOTABILITY YOU THINK RUNS THE WORLD!!! WHAT THE FUCK IS GOING ON ANYMORE!!! THIS IS RIGHT WING WEALTH EXTRACTION TO MOVE IT ALL UPWARDS AND SOME OF YOU ARE GOING TO VOTE FOR ANOTHER RIGHT WING PARTY BECAUSE SOMEHOW YOU THINK THE PARTY COPYINGTHE CONSERVATIVES IS LEFT WING? AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
HOW IS IT THE FAULT OF THOSE WITH NO POWER??? HOW. EXPLAIN IT TO ME.
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