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Reeves to Freeze Rather Than Lower UK Income-Tax Thresholds

Nov. 14, 2025, 11:17 AM UTC
Alex Wickham
Alex Wickham
Bloomberg News

UK Chancellor of the Exchequer Rachel Reeves will extend the freeze to income-tax thresholds at the budget but will not lower them, people familiar with the matter said.

Reeves had considered cutting the threshold at which people pay the basic and higher rate of income tax in order to help fill a fiscal hole which currently stands at £20 billion ($26.3 billion) following the latest forecasts from her budget watchdog.

WATCH: Aberdeen Investments Senior Research Economist Sree Kochugovindan discusses the outlook for the UK economy and markets as it emerged Chancellor of the Exchequer Rachel Reeves has dropped plans to raise the headline rates of income tax in the coming UK budget, prompting questions over how she will make up for a revenue shortfall. Source: Bloomberg

However, the chancellor has decided against doing so, the people said. Such a move would likely have been seen as raising income taxes on workers and ...

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