The number of higher-rate taxpayers is set to surge by 2.5 million in 2025-26 as more are dragged into paying more.

Office for Budget Responsibility (OBR) estimates show that seven million will pay 40% tax in the coming tax year, 2.5 million more than if income tax thresholds hadn’t been frozen.

Various tax thresholds were frozen by then-Chancellor Rishi Sunak in April 2022, and the freeze is expected to remain until April 2028.

Branded a “stealth tax”, freezing tax thresholds increases…