The freezing of income tax thresholds will lead to a stealth tax of £12 billion in 2023-24, the latest forecasts from the Office for Budget Responsibility show. This compares to the cost of almost £3 billion in 2023-24 of extending the Energy Price Guarantee for three months.
The Conservative Government’s freezing of tax thresholds will lead to a total stealth tax of £29.3 billion by 2027-28, or a total of £120 billion over the coming five years, with 3.2 million people dragged into paying income tax and 2.1 million into the higher rate.
The Liberal Democrats are calling on the Chancellor to publish an assessment of how much these stealth tax hikes will cost families across the country, including a breakdown by constituency.
Wera Hobhouse, Liberal Democrat Climate and Energy Spokesperson and MP for Bath, commented: “Conservative stealth taxes are wiping out the meagre energy bill support being offered to families four times over.
“It is a stealth tax grab on my constituents and the rest of the country who have already suffered so much this winter. All it does is just add to the financial pain that this Conservative Government continues to inflict upon us.
“The Chancellor must come clean about the impact of these tax hikes on people here in Bath and households across the country. Families are trying to budget from month-to-month, and they need to know just how bad these tax hikes will be.”
Here is a breakdown of yesterday's Budget announcement by Chancellor Jeremy Hunt: