The Country Needed a Shot in the Arm – We Got Shouting Across the Benches!

While the chancellor may not have announced any changes in the Spring Statement, taxes will still arise in the coming tax year, due to announcements made in the past.

The in-vogue phrase is “fiscal drag”, this refers to more people being sucked into paying tax in the first place, and more of the people already paying tax paying even higher rates.

The personal allowance of £12,570 has not changed since 2021/22 and will not increase until 2028/29 at the earliest. If adjusted for inflation you would have expect the personal allowance to have reached £15,628 by this April (2026).

As the personal allowances increased historically, so did the income level at which you started to pay tax at 40%, with no increase in the personal allowances more & more people are now paying 40% tax!

Tax increases & inflation continue to drive down the value of your money.

Perhaps the tax which has been most affected by fiscal drag is Inheritance Tax!

The Nil Rate Band was increased to £325,000 in April 2009 and will remain the same until at least the 6 April 2030. Adjusted for inflation the current Nil Rate Band should now be £628,460.

The Country Needed a Shot in the Arm – We Got Shouting Across the Benches! no new ideas no changes to energise us, just nothing.

So, remember, just because nothing was announced in this spring statement, you will still be affected by previous announcements.