Rising Tax Revenues and Fiscal Drag: Inflation Unleashes £40 Billion Stealth Tax Surge in the UK

This is £10 billion more than previously estimated just a few months ago.

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The freeze in income tax allowances and thresholds was first announced by Chancellor Rishi Sunak in 2021.

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At the time, the Treasury anticipated that this move would raise £8 billion annually by 2026

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