Millions of Britons will be forced to pay tax on their savings this year as soaring numbers of workers are pulled into higher bands for the first time.
Rachel Reeves's decision to keep tax thresholds frozen means many workers receiving wage rises to help combat the cost-of-living crisis will be dragged into paying more tax.
In a double blow for many, higher interest rates will also mean around 3.4million people are expected to receive a bill for interest made on their savings in the current tax year, up from 3.1million five years ago.
Critics have urged the Chancellor to address the effects of the tax-threshold freeze – known as 'fiscal drag' – as bills go up without income increasing in real terms.
She is also facing mounting pressure to maintain the tax-free amount that savers are allowed to put into cash Isas.
