Britain’s middle classes are the ones who will be most affected by the Pre-Budget Report (PBR), it has been suggested.
Martin Bamford, personal finance writer and chartered financial planner at Informed Choice – a family-owned and managed financial planning firm – remarked that, despite the fact that bank bonuses are to be taxed heavily, it is those with a middle income that will feel the changes most.
Speaking earlier this week to the House of Commons, the chancellor Alistair Darling announced a 0.5 per cent hike in National Insurance contributions for those earning more than £20,000.
This follows a previous rise of 0.5 per cent last year’s PBR.
And Mr Bamfield noted that 2010 could see a climb in income tax bills, as a result of earnings inflation.
“This is quite a sneaky way of raising income tax receipts,” he said, adding that these measures will mean that “it is middle income families who will really suffer”.