Ryan FowlerThe chancellor has extended the freeze on tax thresholds for a further three years, according to the Office for Budget Responsibility’s Budget report, which was published online earlier than scheduled.
The OBR’s analysis outlines the measures taken by Rachel Reeves as part of the Budget and details the projected revenue impact of the policy decisions. In the report, the organisation states that personal tax changes will increase receipts by £14.9bn in 2029-30, driven largely by the continued threshold freeze.
The document says: “A set of personal tax changes which increase receipts by £14.9bn in 2029-30, including: freezing personal tax and employer National Insurance contributions (NICs) thresholds for three years from 2028-29, which raises £8.0bn.”
The chancellor had previously indicated that extending the freeze would “hurt working people”, but the OBR figures confirm that the policy will now remain in place for longer than originally expected.
