22:51 GMT04 March 2021
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    If the reports are true, the measures could be announced in the budget next month, as the country is likely to try to recover from the pandemic-fuelled economic crisis, which is considered to be the worst in centuries.

    UK Chancellor Rishi Sunak is reportedly mulling an option to freeze income tax allowances in next month's budget, according to the Daily Mail.

    The Treasury is now considering cancelling planned increases to both the £12,500 (the amount people can earn before paying income tax) and £50,000 (above which people pay 40 percent tax) thresholds.

    © REUTERS / UK Parliament/Jessica Taylor
    Britain's Chancellor of the Exchequer Rishi Sunak speaks at the House of Commons in London

    Because of inflation, the first threshold was expected to reach around £13,250 by 2024, and the second to about £53,000.

    This means that millions of Britons will have to pay a much higher tax rate on a larger proportion of their income, and the government may save up to £6 billion ($8.3 billion, or 6.85 billion euros). 

    The Treasury, however, has not confirmed the possible freeze.

    The move, called a "stealth tax" would not directly break Tories' pledges, as the Conservative party aimed to avoid raising the income tax rates.

    Tags:
    Rishi Sunak, income tax, United Kingdom
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