The decision to freeze the personal allowance at £12,570 through until April 2031 has hit taxpayers across the country, since the decision was first made in April 2021 after the pandemic. On current plans, the threshold would have been frozen for a decade when it is finally removed, thanks to the last extension announced by former chancellor Rachel Reeves at the autumn Budget in November 2025.

This is the one area Reeves had flexibility after Labour manifesto stated categorically that they would not increase the three big taxes, income tax, VAT and national insurance for working people.