How does freezing income tax thresholds affect your own tax bill?

Rachel Reeves has announced that income tax thresholds will be frozen until the 2030-31 tax year. Composite: Reuters/Getty/The Guardian

The chancellor, Rachel Reeves, has announced that income tax thresholds will be frozen until the 2030-31 tax year.

Freezing tax thresholds results in “fiscal drag” – a phenomenon where people are dragged into higher tax bands when they get pay rises.