Chancellor Rachel Reeves is expected to freeze tax thresholds in the Budget.

Both Labour and the Conservatives have been accused of “stitching up” nine million taxpayers by freezing tax thresholds.

Labour chancellor Rachel Reeves is set to unveil her second Budget on Wednesday, where she will need to hike up taxes or cut public spending in order to fill a £20 billion hole in the public finances.

While the details of the biggest financial announcement of the year will not be confirmed until she sets them out in parliament, Reeves is widely expected to freeze the tax thresholds at which income tax and higher rates of income tax start to apply.

This is often referred to as a “stealth tax” because inflation means taxpayers end up being dragged into a high tax bracket, even if the actual value of their salaries remains the same.

Labour pledged in their 2024 manifesto that they would........

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