After Wednesday’s Budget, the chancellor Rachel Reeves is keen to point out that she hasn’t raised taxes for working people, but if you look at the figures, we’re all gradually paying more tax due to the government’s clever use of fiscal drag.
It all began back in 2021 when the Conservative Party froze the thresholds at which you start paying basic-rate and higher-rate income tax. In doing so, the Treasury found a way to increase its revenue, as higher wages and inflation bring more taxpayers over those thresholds.
