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Tax policy means freezes reduce take-home pay as earnings rise in line with inflation
Income tax thresholds are set to remain frozen after John Healey’s first budget as chancellor.
One of the biggest tax rises in recent years has happened without a change in the rates at which people are taxed on their incomes. Instead it has come from successive government decisions to keep the thresholds associated with the tax at the same level each year, regardless of inflation.
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