𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Voters want Chancellor John Healey to end “stealth” income tax increases when he delivers his first Budget next month. Ending the freeze on income tax thresholds would be the most popular measure the Chancellor could announce, according to a new poll.

The standard personal income tax allowance has been frozen at £12,570 since 2021. Initially introduced by the Conservatives, the freeze was due to end in April 2028, but was extended until April 2031 by former chancellor Rachel Reeves. Failing to increase the threshold in line with inflation effectively increases income tax bills, a process known as fiscal drag.

But 61% of voters want the freeze ended in the October 28 Budget statement. The second most popular measure would be the introduction of a wealth tax, charged on assets rather than income, backed by 44%. Experts said this reflected a desire to see tax rises for other people, with most voters believing a wealth tax would not affect them.

There is also support for increasing defence spending, backed by 41%, according to the survey by Opinium.

The same poll found voters fear being clobbered with more tax rises when Mr Healey delivers his statemrnt.

Nearly two thirds fear that possible tax rises will affect them personally, with worried about an increase in fuel duty or income tax rates top of the list of concerns, following by worries that income tax thresholds could be frozen again.

Sarah Coles, head of personal finance at investment firm AJ Bell, said: “The past couple of Budgets have marched noisily towards us for months, accompanied by a cacophony of leaks, rumours and alarm bells. This one is sneaking up on us more stealthily.”

She added: “The Budget change that would get the most support is a rise in the personal allowance, which 61% of people said they would get behind. This has been frozen since April 2021 and is set to remain so until 2031.

“A possible rise was something Andy Burnham mentioned during his campaign for the leadership, although he has since made it clear this was never a firm promise. The cost of such a move at a time when the government is trying to save money means it’s unlikely to be on the cards this time around.”

The top five fears were of potential tax hikes, while the most popular move would be a tax cut. This reflects the fact that 41% of people want to see tax cuts in the Budget and only 23% of people want to see taxes rise.

“However, not all tax rises are universally unpopular. In among the changes people are more supportive of were the introduction of a new wealth tax and cuts to inheritance tax breaks. This reflects the fact that most of the people who want to see tax rises in the Budget only want to see them rise for other people.”

Other popular changes include a new property tax to replace council tax or stamp duty.