🚨 Breaking News: Income Tax Allowance Freeze Continues 🚨
Andy Burnham, in his debut cabinet meeting as Prime Minister, has announced there will be no immediate increase to the income tax allowance. The current threshold of £12,570, frozen since 2021, isn’t budging anytime soon, despite rising wages pulling more people into the tax bracket. Burnham acknowledged the frustration many have expressed but emphasized the financial challenges faced make it difficult to change for now. Instead, he’s promising a thorough review during the upcoming Budget 📊.
Sources indicate that tweaking the allowance isn’t on Burnham’s front burner for tackling the cost of living crisis. His focus remains on maintaining fiscal discipline while honouring Labour’s pledge not to up the basic, higher, or additional income tax rates from their 2024 manifesto. Unfreezing the allowance could cost a hefty £8.5-9bn annually! 💰
But it’s not all status quo. Burnham has already revealed a plan to cut VAT on household electricity bills starting 1 October, potentially saving families around £45 annually. This move will be funded by ditching Sir Keir Starmer’s digital ID scheme, although this decision has sparked some debate. Stay tuned for more cost of living measures expected later this week! 💡
What are your thoughts on Burnham’s approach? Is freezing the tax allowance the right move, or should there be a shift towards alleviating the financial burden on taxpayers? Let us know in the comments! 🗣️👇
#UKPolitics #AndyBurnham #IncomeTax #CostOfLiving #Budget2026