The Gloucester Liberal Democrats have launched what they call a new ‘stealth tax’ which they say will cost many households in the city £430 by 2026.
“This latest household tax hike follows the government’s refusal to raise income tax thresholds in line with inflation, which typically takes place every year,” a party spokesperson said. municipal Lib-Den.
“This means that even more people will earn above the lowest tax threshold and be forced to pay higher tax brackets.
“Analysis shows the freeze will mean 160,000 more people in low-wage South West England will be paying income tax by 2026, while a further 115,000 people will be dragged into a even higher tax bracket.
Household disposable income is expected to be 1% lower in 2025/26 than it would be if there were no freeze on income tax thresholds.
Councilor Declan Wilson, deputy leader of the Lib Dem group and council finance spokesman, said: “People are already worried about the rising cost of living and paying their bills this winter.
“Now they face years of tax hikes under a Conservative government that takes them for granted.
“The Prime Minister must abandon this unfair stealth tax. Many people I talk to in our local community are already feeling the pressure.
“It’s the last thing households need right now. No wonder so many people across Gloucester feel the Conservative government no longer represents them.”