This will be unwelcome news for hard pressed taxpayers as the six-year freezing of tax thresholds and the tax free allowance since 2021 means that millions will be dragged into higher rates of tax over the next few years.

What is most concerning is that the Institute for Fiscal Studies (IFS) estimated that the overall number of taxpayers paying the 40% higher rate and 45% additional rate is forecast to more than double to 8.9 million in 2027–28 from 4.4 million in 2020–21, meaning that 18% of the workforce will be paying tax at 40% or more in the near future.

The freeze in personal tax allowances and thresholds is exacerbated by high inflation rates and is set to raise an additional £30bn to £32bn in tax for the Treasury this tax year, and an estimated £52bn in 2027-28. This would be 40% more than the current Office for Budget Responsibility forecast and the equivalent of an eye-watering 6% increase in basic income tax to 26%.