Starmer hints at income tax freeze extension amid financial struggles

In the UK, the government's recent welfare reform failures led to a significant reduction in expected savings from adjustments to welfare policies. Initially projected to save £5 billion, the savings were slashed to zero after the reforms were largely dismantled due to political backlash. As a result, there is mounting pressure on the Chancellor to consider tax increases to address the revenue gap left by these changes. It has been reported that discussions about potential tax rises were revived, including options such as extending the freeze on income tax thresholds beyond 2028. This measure could pull an estimated two million additional workers into higher tax brackets.