The Daily Mail’s new interactive calculator can reveal what Rachel Reeves‘ tax bombshell Budget means for you and your household finances.
Stealth taxes, changes to pension contribution allowances, a mansion tax and a new levy on electric vehicles are among the measures hitting voters in the wallet.
Find out exactly how much the policies will cost you by using the widget below created exclusively for the Mail in partnership with smart money-saving tool Nous.co.
Simply enter your income, and toggle on the policies that apply to your circumstances to see the total change to how well off you are.
Household finance expert Greg Marsh, chief executive of Nous.co, said: ‘Working families are being pummelled by Rachel Reeves’ harmful and unfair stealth taxes.
‘However the Government tries to spin it, keeping tax thresholds frozen is leaving working people with a vastly higher tax bill.
‘What’s also troubling is that people doing the right thing – saving for their future and paying into their pension pots – are being quietly targeted as well with the changes to pension contribution rules.’
USE THE CALCULATOR HERE
He added: ‘Bringing down energy bills is a small step in the right direction, but it won’t come close to solving the UK’s spiralling energy debt crisis. A record number of households now owe money to their supplier, and that mountain of debt is only getting bigger.
‘After years of soaring prices families desperately need relief, but the pressure on household finances is not going anywhere.
‘People deserve honesty about what’s happening to their money, and real action to ease the strain.’
Today, Ms Reeves announced tax rises amounting to £26 billion as she battles a downgrade in forecast economic growth.
More than 1.7 million people will face paying more income tax as she froze thresholds, meaning people will be dragged into paying the tax for the first time or shifted into higher bands as earnings increase.
The measures contribute to a tax burden that will rise to an ‘all-time high’ in 2030/31.
The Office for Budget Responsibility (OBR) forecast gross domestic product would grow by 1.5 per cent this year, an increase from its earlier 1 per cent forecast.
But it downgraded growth in 2026 from 1.9 per cent to 1.4 per cent, in 2027 from 1.8 per cent to 1.5 per cent, in 2028 from 1.7 per cent to 1.5 per cent and in 2029 from 1.8 per cent to 1.5 per cent.
Chancellor Rachel Reeves delivers her Budget in the House of Commons this afternoon
In an unprecedented blunder, full details of Ms Reeves’s plans were published by the OBR more than half an hour before she stood up in the Commons chamber.
The OBR confirmed Rachel Reeves’s Budget ‘raises taxes by amounts rising to £26 billion in 2029/30, through freezing personal tax thresholds and a host of smaller measures’.
The freeze in thresholds will result in 780,000 more basic-rate, 920,000 more higher-rate, and 4,000 more additional-rate income tax payers in 2029/30. Scotland has a separate income tax system.
The policy, which applies to income tax and national insurance contributions, will rake in £8.3 billion for the Exchequer in 2029/30 and the freeze will extend to 2030/31.
Other personal tax changes include £4.7 billion through charging national insurance on salary-sacrificed pension contributions, and £2.1 billion through increasing tax rates on dividends, property and savings income by two percentage points.
Ms Reeves acknowledged the freeze in tax thresholds would hit ‘working people’ – the group Labour had promised to protect – but she was ‘asking everyone to make a contribution’.
‘I can keep that contribution as low as possible because I will make further reforms to our tax system today to make it fairer and to ensure the wealthiest contribute the most,’ she said.
The combination of measures means that tax as a share of the economy – the tax-to-GDP ratio – will ‘increase to an all-time high of 38.3 per cent’ in 2030/31.
The Chancellor insisted the downgraded growth forecasts were ‘the Tories’ legacy, not Britain’s destiny’ after the OBR lowered its expectations for productivity growth by 0.3 percentage points.
