In total 2.5m taxpayers will have to pay higher and additional rate tax for the first time, with the situation unlikely to improve before 2029 at the earliest based on the latest freeze extension announced at the Budget.

There will be 6.3m higher rate taxpayers in the current tax year 2024-25, up 43% from 2021-22, and 1.13m paying the 45% additional rate tax, more than double the number just three years ago, showed figures from Hargreaves Lansdown.