Amid concerns over the UK’s escalating tax burden, heightened by pandemic-induced spending and fiscal drag, the Budget is expected to address taxation policies. The government’s decision to freeze tax thresholds until 2028 has drawn attention to the concept of fiscal drag, wherein taxpayers are inadvertently pushed into higher tax brackets due to inflation-driven income growth. Chancellor Hunt faces pressure to alleviate this burden, although limited fiscal headroom presents challenges to substantial tax cuts. Potential Tax Policy Developments Speculation surrounds potential tax policy changes, including a rumoured ... (full story)