Monday, December 1, 2025

Welsh workers disproportionately hit by income tax threshold freeze

Today (Monday 1st December) Plaid Cymru’s Westminster Leader, Liz Saville Roberts MP accused the UK Government of “message manipulation” in relation to last week’s Autumn Budget. 

 

Ms Saville Roberts said that the freeze on income tax thresholds will hit Wales badly, with an estimated five times more Welsh workers being pulled into the basic rate compared with the UK as a whole. 

 

Labour are claiming that they have not broken any manifesto pledges in relation to raising headline income tax rates but analysis shows that Welsh workers will be disproportinately hit by the freeze on income tax thresholds.  

 

In the House of Commons, Liz Saville Roberts MP said she “presumed” that the UK Government consulted with the Welsh Government on these changes. She urged the Chief Secretary to the Treasury, James Murray MP to release the Labour Welsh Government’s response “specifically in relation to confidence and cost of living hit”.  

 

 

Liz Saville Roberts MP said: 

 

“I’m very interested to learn that the Chancellor is in Wales today. 

 

“Amidst all this message manipulation she leaves him to explain exactly why the continued freeze on income tax thresholds will hit Wales badly, with an estimated five times more Welsh workers pulled into the basic rate compared with the UK as a whole. 

 

“I can only presume the Treasury consulted with Labour Welsh Government - will he release their response specifically in relation to confidence and cost of living hit?” 

 

James Murray MP dismissed Ms Saville Roberts’ question and instead repeated some of the Chancellor’s announcement from the Budget that he claimed ‘benefits Wales’. 

 

- ENDS -


EDITOR’S NOTES:


Estimated five times more Welsh workers being pulled into the basic rate compared with the UK as a whole: Frozen 2: Tax Freezes, the 2-Child Limit (and what the 2025 Autumn Budget means for Wales) - Thinking Wales - Meddwl Cymru - Cardiff University