Income tax: freeze pushes receipts up

Emma Rawson OBE, Director of Public Policy at the ATT, said: ‘The latest figures provide a clear illustration of how frozen tax thresholds affect taxpayers. There have been persistent rumours that the government could revisit the threshold freeze, but any meaningful change would likely require either tax rises or spending reductions elsewhere. The longer thresholds remain frozen, the more expensive it becomes to reverse the policy. Each passing year brings more taxpayers into the system and increases the gap between current thresholds and where they might otherwise have been.’