Following Rishi Sunak’s pledge to lower the tax rate by one penny, there is further speculation suggesting a potential reduction of up to 2p in the basic rate of income tax, bringing it down to 18%.

This comes from reported discussions among Sunak's advisors regarding the launch of a five-year tax-cutting plan. This adjustment to income tax bands would mark the first increase since April 2022, providing relief to UK taxpayers from the effects of fiscal drag.