Exclusive
OAP TAX WOES
Rachel Reeves will hit 1.5million pensioners by dragging them into higher tax bands at Budget, experts fear
Thresholds were fixed by the Tories until 2028 but Ms Reeves is thought likely to extend the freeze
RACHEL Reeves will hit 1.5million pensioners in the pocket by freezing income tax thresholds at the Budget, experts fear.
The move risks them being dragged into higher tax bands, as the state pension is set to rise.
2
2
It will be a fresh blow to retirees, many of whom have been stung by the Chancellor’s axing universal winter fuel cash.
Jon Greer, from finance firm Quilter, said: “The triple lock may increase state pensions but, with tax thresholds frozen, many will find themselves paying taxes on what should be a lifeline.
“For those with state and private pensions, the hit will be felt sooner, eroding their incomes at a time when financial security is crucial.”
Thresholds were fixed by the Tories until 2028 but Ms Reeves is thought likely to extend the freeze.
Read More on Politics
Meanwhile, she has been pressed to find money to help support struggling town halls — as one in four councils expect to, in effect, go bust in the next two years.
One in ten council heads say they have considered asking the Government for support.
The body’s Labour chairwoman Louise Gittins described the current financial crisis as “extraordinary” ahead of their annual rally in Harrogate, north Yorkshire, from today.
She said: “The autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”
Most read in Money
Rachel Reeves gives first major speech as Chancellor
Topics