00:00The Chancellor has frozen income tax thresholds until 2031.
00:05There is a political argument over whether that breaks her manifesto pledge.
00:10She admits that it means that working people are going to pay more tax.
00:16Can you just explain to us how that's going to work?
00:20I can, and in my view, I think it breaks the spirit of the manifesto pledge,
00:23but I'm not 100% sure whether it breaks the actual rule of the pledge.
00:28I mean, the frustrating thing here is the nightmare we have had in Britain for the last 20 years
00:33is the way that our electoral system works, that they have to do these pre-election pledges
00:37when it isn't, you know, to match each other.
00:40It means that we've been lied to by all politicians of all parties for 20 years,
00:44that we can cut taxes and increase public spending.
00:47Well, you can't, and it's such a shame Labour locked itself in,
00:50because the truth is a 1p rise in income tax would have probably hit people less hard
00:56than freezing the tax thresholds, the stealth tax.
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