Rachel Reeves hints that people WILL pay more income tax if Labour wins the election as she refuses to commit to unfreezing thresholds dragging workers into higher rates – as she accuses Tories of ‘gaslighting’ voters over the state of the economy [Video]

06:38 EDT 07 May 2024, updated 08:55 EDT 07 May 2024

Rachel Reeves suggested that workers face paying more income tax under a Labour government today after refusing to commit to unfreezing static thresholds that have dragged millions into higher rate bands.

The shadow chancellor told an audience in the City of London that she wanted workers to pay less tax but that she would only act ‘when resources allow’.

Because of rampant inflation over the past couple of years wages have risen but the tax band thresholds have remained where they are, meaning more and more people are paying more without an increase in the rates themselves. 

Tory Chancellor Jeremy Hunt has also rejected calls to change the rate boundaries. An analysis today suggests the country’s tax burden is set to rise to an 80-year high of 37.1 per cent by 2028.

Ms Reeves spoke after giving a speech accusing the Toriesof ‘gaslighting’ the public over the state of …