Rachel Reeves promises to ‘grip the cost of living’ in autumn budget

Chancellor admits economy ‘feels stuck’ for many as she signals intention to freeze income tax thresholdsRachel Reeves has promised to “grip the cost of living” in the budget as she prepares to scrap the two-child welfare limit and freeze rail fares, while putting forward a multibillion pound tax raising package.The chancellor is preparing to give her second budget on Wednesday after weeks of uncertainty about the scale of tax rises that she will need to plug a financial hole of about £20bn.Freezing income tax thresholds for an extra two years to 2030, bringing more people into higher tax bands as wages riseMaking salary sacrifice schemes less generous including those for pension contributionsBringing in higher tax on the most expensive properties, including a surcharge on the highest value housesA pay-per-mile scheme on electric cars to help fill the tax gap from petrol duty as more people opt for green vehicles. Continue reading…