Personal tax allowance to be frozen for five years

Rishi Sunak said the Government will not raise the rates of income tax, national insurance, or VAT.

But he added: “Instead, our first step is to freeze personal tax thresholds.”

The Chancellor went on: “We will of course deliver our promise to increase it again next year to £12,570, but we will then keep it at this more generous level until April 2026.

“The higher rate threshold will similarly be increased next year, to £50,270, and will then also remain at that level for the same period.”