Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of additional taxpayers expected to be brought into the higher rate of income tax as a result of the continued freeze in income tax thresholds; and what assessment he has made of the potential impact of fiscal drag on household disposable income.

At Budget 2025, the Government published estimates of the impact of maintaining income tax thresholds, including the number of additional taxpayers expected to be brought into the higher rate of Income Tax, in the accompanying Tax Information and Impact Note, available here:

Income Tax: Maintaining the Personal Allowance and the basic rate limit for Income Tax, and equivalent National Insurance contributions thresholds until 5 April 2031 - GOV.UK

The Government also regularly publishes analysis of the impact of tax, welfare and public service spending policies on households across the income distribution. The most recent analysis was published alongside Budget 2025, which includes the impact of the Budget 2025 decision to maintain personal income tax thresholds.

Impact_on_households.pdf