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Tories' stealth tax to cost North East families £400 million by 2026 - don't clobber families who are already feeling the pinch say Liberal Democrats

January 10, 2022 5:53 PM

Christine Jardine MP, Lib Dem Treasury spokespersonThe Conservative government's stealth tax raid will cost the average family in the north east £340 a year by 2026, or a total of £400 million, research commissioned by the Liberal Democrats has revealed.

The figures reveal the scale of the cost to families of the government's decision to freeze the personal tax allowance and higher rate tax threshold until 2025/26, compounding the growing cost of living crisis.

The new analysis by the House of Commons Library has found the freeze will mean an additional 80,000 people on low pay here will be dragged into paying income tax by 2026, while a further 45,000 people will fall into the higher rate tax bracket. The research is based on modelling using the latest inflation forecasts from the Office of Budgetary Responsibility.

The Liberal Democrats are demanding that the government drops their planned stealth tax raid that will "clobber families who are already feeling the pinch," amid soaring energy bills and the rising cost of living.

Across all regions, household disposable incomes are estimated to be 1% lower in 2025/26 than they would be if there was no freeze to income tax thresholds, or £430 lower per household.

Liberal Democrat Treasury Spokesperson Christine Jardine MP said: "The Tories must drop this unfair stealth tax that will clobber families who are already feeling the pinch.

"People are worried about the rising cost of living and paying their bills this winter. Now they face years of tax rises under a Conservative government that is taking them for granted."