Government’s freeze on income tax thresholds is set to force nearly 550,000 Londoners into higher tax brackets by 2027/28, raising concerns over rising tax burdens and the impact on middle and lower-income families across the South East.
The recent announcement of income tax threshold freezes and reductions promises to hit workers in London and the South East hard, pushing hundreds of thousands into higher tax brackets and further squeezing their already overstretched disposable incomes. Official figures reveal that these policies will force nearly 550,000 Londoners into paying the higher 40p income tax rate by the 2027/28 tax year, a stark example of how the government’s misguided fiscal drag is constricting the finances of ordinary taxpayers.
This shameless freeze on thresholds is expected to add up to 1.1 million more taxpayers across London and the South East, illustrating how the Treasury is effectively banking on ordinary families paying more without a clear mandate or accountability. With inflation eroding earning power, millions will be compelled to shoulder higher tax burdens, with around 750,000 individuals across these regions already set to face increased taxes by 2025/26. This is nothing short of a stealth tax increase, siphoning off hard-earned income to fund a government unwilling to curb its reckless spending.
Official government data confirms that income tax contributions from London and the South East now surpass £100 billion annually, a record high, highlighting how these policies disproportionately hit those on middle and lower incomes, including key workers like police officers, teachers, and nurses. Alarmingly, over 900,000 such public service employees are projected to be caught in this fiscal drag by 2028, underscoring a government that appears more intent on raising revenue than protecting vital public services.
This worsening tax burden is driven by a phenomenon known as “fiscal drag,” where inflation and threshold freezes push taxpayers into higher rates despite no official rate increase. Currently, over a million Britons are paying the top 45% income tax rate, yet this is just the tip of the iceberg, as millions face higher brackets purely because of government inaction and inflation. Far from fair, these policies are punishing those who strive to earn their living and contribute to society.
While government figures misleadingly claim that London households might see a slight average disposable income increase of £110 this year, thanks to some National Insurance cuts, the reality for much of the South East tells a different story. Residents, especially in commuter belts and outer London, are set to lose an average of £1,580 annually by 2027/28 due to frozen thresholds and rising costs, deepening financial pressures on families already struggling to make ends meet.
These tax policies reveal a government out of touch with the economic realities faced by hardworking middle earners. Instead of easing the burden, their actions are driving up taxes on the very people who keep the economy ticking, public sector workers and everyday families, while fostering frustration and insecurity. It’s clear that without serious reform and a rejection of these destructive fiscal policies, the future looks increasingly bleak for ordinary taxpayers.
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent developments regarding Chancellor Rachel Reeves’ decision not to extend the freeze on income tax thresholds beyond 2027/28. This policy shift was announced in October 2024, as reported by Reuters. ([reuters.com](https://www.reuters.com/world/uk/uk-rules-out-extending-freeze-personal-tax-thresholds-beyond-2029-2024-10-30/?utm_source=openai)) The article also discusses potential tax measures targeting high-value properties, which aligns with ongoing policy debates. However, the specific details about a potential “mansion tax” or increased council tax bands for expensive properties are not corroborated by other sources, raising questions about the originality of these claims. The article’s publication date is November 15, 2025, indicating a high freshness score. Nonetheless, the lack of external verification for some claims suggests caution.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Chancellor Rachel Reeves and references to policy decisions. However, these quotes are not directly sourced or linked to specific speeches or documents, making it challenging to verify their authenticity. The absence of direct citations for these quotes reduces the score.
Source reliability
Score:
6
Notes:
The narrative originates from The Standard, a UK-based news outlet. While it is a known publication, its reputation for accuracy and thoroughness is mixed. The article’s reliance on unnamed sources and the lack of direct citations for key claims raise concerns about the reliability of the information presented.
Plausability check
Score:
5
Notes:
The article discusses potential tax measures targeting high-value properties, such as a “mansion tax” or increased council tax bands. While these are plausible policy considerations, the specific details provided are not corroborated by other reputable sources. The lack of supporting evidence for these claims, combined with the absence of direct citations for key quotes, suggests a need for further verification.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent developments regarding income tax threshold policies and potential tax measures targeting high-value properties. While the publication date indicates freshness, the lack of direct citations for key quotes and the absence of corroborating evidence for specific claims about potential tax measures raise concerns about the article’s reliability and originality. The mixed reputation of the source further contributes to the overall assessment.
