A worker on £50,000 today is set to actually be poorer in five years’ time, despite getting pay rises
STEALTH taxes will hammer workers — leaving some £505 worse off by the end of the decade, a report warns.
Chancellor Rachel Reeves’ freeze on personal allowances will hit those earning £50,000 — but incomes for OAPs and those on benefits will rise
NHS workers, teachers and IT staff will all be caught up in the tax grab, the Centre for Policy Studies says.
They will be worse off even if their salaries rise by 12 per cent, as predicted by wage growth forecasts.
Daniel Herring, from the CPS, said: “Labour’s tax policy is hammering workers while protecting benefit recipients and pensioners.
“Freezing the personal allowance for income tax until 2031 will hit everyone, but it’s those who are dragged into higher tax bands who will really suffer.
“A worker on £50,000 today is set to actually be poorer in five years’ time, despite getting pay rises.
“This is fiscal drag in action, raising taxes for millions of workers through the back door.”
A Treasury spokesman said Ms Reeves’ decisions at the Budget were “fair and necessary”.
Works were frustrated again when Keir Starmer last month admitted there were “alternatives” to the painful tax hikes in Reeves’ “Benefits Street Budget”.
The PM insisted neither he nor the Chancellor lied to the public.
Starmer used a speech to defend his embattled Chancellor as she faced accusations of misleading the country about a “black hole” in the public finances to justify her £26billion tax raid.
