Mid-income workers on the hook for £2,310 extra

MILLIONS of middle-income workers will be hit if Rachel Reeves extends the freeze on income tax and national insurance thresholds, analysis warns.

- BY MARTYN BROWN

The tax paid on a median income will be £2,310 higher at the end of the decade than if it had not been frozen four years ago.

Ms Reeves is looking at extending the freeze until 2029-30. Some £1,698 of the increase has already mounted up since 2021-22 when it was introduced by the Tories.

The TaxPayers' Alliance, which campaigns for lower taxes, has warned ahead of Wednesday's Budget that national insurance and income tax costs for the average earner will rise 19% by 2029-30 if the Chancellor presses ahead with reported plans.