Sir Keir Starmer has not dismissed the possibility of extending the freeze on income tax thresholds throughout the current parliament, as the Government grapples with a fiscal deficit that some economists estimate could exceed £20bn. During Prime Minister's Questions, Starmer reaffirmed Labour's commitment to not raise income tax, national insurance, or VAT on working individuals, yet he did not clarify whether the tax band freeze would continue. Chancellor Rachel Reeves has warned that prolonging the freeze, initially set by the former Conservative government until April 2028, would "hurt working people." The Institute for Fiscal Studies estimates that extending the freeze could generate £9bn to £10bn by the end of the parliament. The freeze is projected to bring 4.2m additional taxpayers into income tax by 2028-29, with 14% of adults expected to pay the 40% marginal rate by then, compared to less than 4% in the early 1990s
