The 'hidden' tax inside the 2025 Budget | ITV News

Labour chancellor of the exchequer Rachel Reeves says your income tax isn’t going up in her 2025 Budget… but what about ‘stealth tax’ and how could it impact your finances?

As the Labour chancellor makes her speech in parliament with no mention of increasing the tax we pay on our earnings, we’re focusing on what hasn’t changed.

Freezing the tax bands until 2030/31 may not seem like much of a moneymaker, but the government can raise £8 billion from it.

It means millions of UK workers in the long run will be paying the 'hidden' cost without even seeing it on their payslip.

So what is this hidden ‘stealth’ tax and why won’t the government do anything about them?

0:00 Rachel Reeves’ Budget announcements
0:52 How tax bands work
2:46 How inflation hits your pay cheque
3:42: The reality of fiscal drag
5:23 How much can the government make?

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