IEA Executive Director Tom Clougherty has been quoted in The Daily Express highlighting the continued freeze on income tax bands and arguing that not raising tax thresholds in line with inflation constitutes a stealth tax increase.

Tom said:

“The Conservatives started it and Labour are continuing with it – which somewhat undermines their promise not to raise income tax, national insurance, or VAT.

“As things stand, the big rise in the personal allowance since 2010 is effectively being reversed and far too many people are being dragged into paying higher rates of tax.

“Obviously there are trade-offs here: unless the Government cuts spending or significantly boosts growth, raising tax thresholds would mean that other taxes have to rise instead.

“The best approach would be to stop making tax policy in such a short-term, piecemeal way and instead start preparing a big reform of the system as a whole.”

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