On average UK households will lose more from freezes in tax thresholds over the next three years than they will gain from tax cuts to the basic rate of income tax.

Freezes to personal tax alone will reduce households’ income by £1,250 on average by 2025-26. Adding in freezes to benefits and gradual policy rollouts brings that figure to £1,450.

The combined impact of headline tax changes, policy rollouts, frozen taxes and benefits is broadly regressive, with the poorest seeing income falls of 2.8% and the richest falls of only 1.1%.