The 'sneaky tax' taking money from Manchester's workers

Headline figures from this week's Spring Budget have declared that millions of workers stand to benefit from yet another cut to National Insurance Contributions (NIC), while UK workers continue to pay the highest tax since World War Two. This has led some M.E.N readers to call the Chancellor's Budget a 'sneaky tax' on working people.

With employee salaries going up to reflect the growing cost of living, as well as an increase in the National Minimum and Living wages, three million workers are finding themselves paying income tax despite working lower-paying jobs, while two million others are being forced into a higher tax bracket for doing the same work.

This is because the thresholds at which workers pay income tax have been frozen since 2021, before the price of common goods and services spiked, pushing up wages. According to the Institute for Fiscal Studies' figures, the past year of tax changes should benefit around half of all workers, with this week's two pence cut in NIC adding to the two pence drop implemented in January, but the overall picture for household budgets is less clear.

READ MORE: 10 key announcements made in Spring Budget 2024 and how they will impact you

Although all workers earning over the tax threshold of £12,570 and under £50,000 stand to benefit from the cut to NIC, most of those workers have also seen their annual tax contribution increase at the same time. This has led to accusations from financial experts of the Chancellor giving with one hand, while taking with the other.

Which is why one reader, following the Budget, accused the Chancellor of implementing a "sneaky tax", which not only affects workers but anyone with a private income, saying that "the tax threshold being held is hurting