Political opinion: Horsham MP challenges Government over stealth tax rises

Liberal Democrat MP for Horsham, John Milne, has challenged the government over its decision to continue freezing personal tax thresholds, warning that millions of people will be dragged into paying more tax despite no increase in their real earnings.  

Speaking in the House of Commons on Monday (2 November 2026) during the debate on the Autumn Budget, John Milne MP highlighted the impact of fiscal drag, arguing that the continued freeze on personal tax thresholds was more important than any measure in the Budget, despite not even being mentioned by the Chancellor. He warned that another half a million people would start paying income tax for the first time this year, with a further half a million pushed into a higher tax bracket.  

Mr Milne criticised the government for relying on what he described as the Chancellor's “handy trick” of fiscal drag, allowing more people to be pulled into higher tax brackets without formally increasing tax rates.  

He also argued that the Budget lacked any meaningful plan for economic growth, describing it as “less ‘Steady as she goes’, and more ‘Let this grind to a complete halt’”. He said that after years of economic uncertainty and rising living costs, the government was simply tinkering around the edges rather than addressing the underlying problems facing the country.  

The Liberal Democrats are calling for a new Growth and Defence Partnership with the European Union, including closer trading arrangements through the Single Market and a Customs Union. The party argues that stronger economic growth would generate additional tax revenues that could reduce the tax burden on households and fund investment in public services.  

Under the Liberal Democrat proposals, the personal income tax allowance would rise to £15,000 and the higher-rate threshold to £56,000 over five years, putting an estimated £680 back into people's pockets and taking 2.5 million low earners out of income tax altogether.  

The Liberal Democrats have also called for a temporary reduction in VAT for hospitality, accommodation and attractions from 20% to 15% until April 2028, alongside fairer business rates and further support for small businesses.