Chancellor Rachel Reeves is plotting a 'stealth tax raid' on workers in the next budget as she looks to plug a £50billion black hole in public finances.
The Labour minister is reportedly set to introduce a six-year freeze on income tax thresholds rather than increasing them in line with the cost of living or inflation.
The plans will spell a blow for workers pockets in a move which would raise roughly £7bn a year if kept until the end of the decade.
The stealth tax raid would raise billions as more workers are pushed into higher tax brackets with thresholds frozen, forcing them to pay higher income tax rates despite missing out on real pay rises.
Labour has pledged not to raise taxes on 'working people' and ruled out increasing income tax rates, meaning the move would be highly controversial.
