Both Labour and the Conservatives promise to keep income tax thresholds frozen until 2028 if they win the general election.
In other words, we can all look forward to stealth taxes, whichever party claims victory.
The Institute for Fiscal Studies has warned of the effects of fiscal drag, suggesting the freeze will result in 4.5 million more people being pushed into higher income tax thresholds by 2028.
Income tax thresholds determine the amount of money individuals must earn before starting to pay tax or moving into higher tax brackets.
These thresholds usually rise with inflation, but most bands were frozen in 2021 by the Conservative government.
Speaking on the BBC’s Today programme, Chancellor Jeremy Hunt confirmed the freeze for the next three years, stating: “A future Conservative government will not increase income [tax] rates and VAT.”
Labour’s shadow chief secretary Darren Jones, also confirmed to the BBC that a future Labour government would freeze income tax, national insurance, and VAT thresholds
A Labour source later clarified that Jones meant rates, not thresholds.