James Rodger

Warnings from the Office for Budget Responsibility indicate that raising income tax thresholds in line with prices rather than earnings could significantly increase the number of higher‑rate taxpayers and reduce labour supply by around two million by 2075. The analysis follows Andy Burnham’s suggestion that there may be room for tax rises under a future Labour government, continuing the threshold freeze introduced under Rishi Sunak and extended by Rachel Reeves. OBR officials caution that long‑term tax threshold adjustments could diminish incentives to work, remain in the UK and save, intensifying pressures on public spending. Burnham maintains his commitment to Labour’s manifesto while asserting some flexibility on tax measures.