A million more workers and pensioners will have to pay income tax this year as Andy Burnham backtracks on his plans to increase the personal allowance.
A freeze in the tax thresholds since 2021, which is due to remain until 2030/31, has dragged millions of people into paying tax as wages grow.
HMRC estimates the number of basic-rate taxpayers will increase to 31.4million, from 27.4million in the year the freeze was implemented.
And fresh analysis by the Taxpayers' Alliance has found that 1million more people will pay £640 more on average in income tax this year compared to two years ago.
It comes as the Prime Minister u-turned on his promise to look at increasing the £12,570 tax-free personal allowance to prevent more people being dragged into the tax net, as analysis shows 500,000 more Britons will have to pay the basic rate of tax this year.
