Business · 8 hours ago

Healey's Budget Freezes Income Tax Thresholds Until 2031

Chris McAndrew, CC BY 3.0, via UK Parliament / Wikimedia Commons

Chancellor John Healey's Budget keeps income tax thresholds frozen until April 2031, even though he did not spell out the extension in his Commons speech. The personal allowance stays at £12,570 and the higher-rate threshold at £50,270. As wages rise with inflation, more people will be pulled into paying tax or into higher bands, a stealth rise economists call fiscal drag, without any rates changing.

By BriefTea Editorial · 28 October 2026 at 16:47

Reported by The Guardian · How we write briefs