How Reeves' latest tax raid will hit your finances hard

Bills to rise for pensioners and workers

- HARVEY JONES

THE Chancellor delivered her Budget in a triumphant tone, boasting about all the money she was spending. Anybody would think the economy was booming, debt was falling and income taxes were coming down. But the reality is quite the opposite.

The Office for Budget Responsibility (OBR) warns that Britain faces five years of stagnating living standards as inflation and higher taxes bite. It expects real household disposable income to grow by just 0.25% a year.

The watchdog also said cumulative borrowing will be nearly £70billion above previous forecasts, as Reeves continues to spend like a drunken sailor on shore leave.

Ultimately, taxpayers will pay.

Despite leaks beforehand, it still came as a shock when Reeves announced she would extend the income tax threshold freeze by another three years all the way to 2031. Most analysts expected two. By the time it ends, thresholds will have been frozen for nine years. At this rate, one wonders if the £12,570 personal allowance will ever rise again. Certainly not in this Parliament.