Fresh Labour chaos as a MILLION Brits will be dragged into paying higher tax rates ‘by stealth’ this year

A MILLION people will be dragged into paying higher tax rates this year — as Andy Burnham’s spending plans descend into chaos. Labour was accused of trapping more Brits in the “taxman’s net by stealth”. A million people will be dragged into paying higher tax rates this year Credit: Alamy Labour was accused of trapping more Brits in the ‘taxman’s net by stealth’ Credit: Reuters Research by the Taxpayers’ Alliance shows 500,000 more people will pay the basic rate for the first time as their wages go over the £12,570 personal allowance, which has been frozen since 2021. Meanwhile, 410,000 will hit the higher 40 per cent rate at £50,270, and 70,000 on £125,000 or more will pay 45 per cent. Sign up for the Money newsletter Thank you! The new Prime Minister had suggested this week he was open to increasing the allowance after saying frustration about it had featured heavily on doorsteps in Makerfield. When pressed on the issue, the PM, who was in Bath yesterday, said: “It was raised a lot, but I went on to say, ‘But we’ll have to look at it at the Budget alongside everything else’. So no commitment, no unfunded promise.” John O’Connell, of the TaxPayers’ Alliance, said: “A million more are being caught in the taxman’s net by stealth. “If he really wants to give hard-working taxpayers breathing space, he should end fiscal drag and unfreeze tax thresholds.” Shadow Chancellor Sir Mel Stride said: “Keir Starmer and Rachel Reeves hiked taxes to pay for more welfare. “Andy Burnham has no plan for Government, so is rapidly heading towards the same. His announcements don’t add up.” Most read in Money The PM was in Bath to announce a £2 national bus fare cap — but Transport Secretary Heidi Alexander ended up squirming on Sky TV later when asked how its £454million cost will be funded. MR BURNHAM will meet Scottish First Minister John Swinney in Glasgow tomorrow but does not plan to discuss a second independence referendum. 2 comments2