Middle-income earners in Britain are facing rising financial pressures as wages struggle to keep pace with inflation, according to experts.
Static tax thresholds are pushing households into higher tax brackets.
Britain’s middle-income workers are being squeezed harder than ever, a leading tax expert has warned.
Neil Berry, partner at accountancy and advisory firm MHA, told GB News: "Many middle earners are being dragged into positions of paying additional tax through fiscal drag which is leaving them with less disposable income!"
He cautioned that with tax thresholds frozen and living costs still elevated, households risk finding themselves trapped in higher tax brackets without feeling any richer.
He added that raising income tax would add further pressure to middle earners.
Mr Berry said that increasing tax rates adds to the burden, while calls for higher taxes reflect the UK’s strained public finances, which are under growing demand.
"The challenge is to strike a balance between supporting households, of all descriptions, which are under mounting pressure and ensuring the sustainability of government revenues."
He also noted that the IOD’s call for higher taxes "really highlights the tension between fiscal sustainability and the need to protect growth."
Middle-income earners in Britain are facing rising financial pressures
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Mr Berry said that higher taxes, which may help to plug the growing gap in public finances, risk discouraging work and investment amongst middle-class taxpayers.
"With all households under pressure, weak economic growth, the government must tread carefully," he added.
"They must avoid measures that will undermine spending power, work incentives and investment. Increases now could hit consumer confidence at precisely the wrong time!"
Britain's tax burden has reached its highest point since the Second World War, with Chancellor Rachel Reeves considering further increases.
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