Burnham-On-Sea’s MP Ashley Fox has criticised the Labour Government’s latest Budget, warning in Parliament that its decision to continue freezing income tax thresholds will push more local workers and pensioners into higher tax brackets.
Speaking during the debate on clause 10 of the Finance Bill, Ashley said the Government’s plan to extend the freeze on the personal allowance and basic rate limit until 2031 amounts to “a full decade” without any adjustment for inflation.
He argued that the policy breaks Labour’s manifesto commitment not to raise taxes on working people, saying the freeze will mean more residents paying higher rates of tax even when their wages simply keep pace with rising prices.
Ashley says teachers in his constituency had already expressed concern that by 2030 they could be paying 40% tax on additional work such as exam marking, making extra effort “no longer worthwhile”.
He also warned of the impact on older residents, saying the freeze would pull pensioners with modest private pensions and savings into the tax system for the first time.
“Freezing allowances will mean more pensioners paying tax on their income from savings,” he told MPs. “Pensioners cannot put in more hours or ask for a pay rise. They are victims of this Government’s failure to control public expenditure.”
Ashley argued that much of the revenue raised from clause 10 would go towards rising welfare spending, warning that expanding benefits without reform risked discouraging work.
“Those who do the right thing, who work hard to provide for their families, now face higher tax bills to fund an ever-larger welfare state,” he said.
He confirmed he would vote against clause 10, saying the consequences of the policy would fall on “working families, pensioners, and those who have done the right thing throughout their lives.”
