https://community.ebay.co.uk/t5/Business-Seller-Board/UK-Retail-sales-down-1-1-in-October/m-p/7961104#M340471 <P>Yes, the freeze is already in operation until 4/28 but there has been speculation that it will be extended to 2030 in the budget.</P><P>&nbsp;</P><P>If it is I can't see discretionary spending increasing greatly because so many people don't understand it or how it affects their income.&nbsp; All they understand is that they have less to spend each month.</P><P>&nbsp;</P><P>Years ago I worked in a wages office and at intervals had to explain to employees that overtime was not taxed at a higher rate than their basic pay when they were convinced that it was.&nbsp; The reason being that their Tax Allowance was used up on part of their basic pay, reducing the tax paid.&nbsp; Overtime was taxed at the full rate, without any allowance so looked to be taxed at a higher rate.</P><P>&nbsp;</P><P>Frozen allowances are also not understood and similar to the situation above.&nbsp; If the govt. announced (say) a 2p rise on all tax bands people would understand better, work-out how much more they would be paying and have the confidence to (perhaps) spend the rest.&nbsp;</P><P>&nbsp;</P><P>Frozen allowances are insidious because they hide the increase.&nbsp; Most people don't know how much their allowance is or how it is applied to their income, they just see their Nett pay has gone down without really understanding why.&nbsp; IMO it is the uncertainty that leads many to be over cautious and reduce /stop spending.&nbsp; 'Just in case' things get worse in a situation that they don't fully understand and can't work out the impact of.</P><P>&nbsp;</P><P>The govt. can push through any increase it likes with it's huge majority, but hopefully if tax is to be increased they will do it transparently and add a few pence to the tax rates rather than extend the freeze.&nbsp; IMO, the uncertainty is what is killing spending, at least as much as the actual reduction in cash to spend.</P> Sat, 22 Nov 2025 09:54:52 GMT theelench 2025-11-22T09:54:52Z