According to new research, taxpayers are on course to pay £40bn a year more by 2028 due to the freeze on personal tax thresholds and inflation.

Independent think-tank, the Resolution Foundation, said the policy would lead to the country's biggest tax rise in at least 50 years.

The current Government policy, announced in Chancellor Jeremy Hunt's autumn statement, is to keep all income tax and National Insurance thresholds frozen until 2028.

Millions of people will be pulled into a higher tax band or see a greater proportion of their salaries taxed, particularly those who have secured wage increases.

Inflation has also had an impact. Due to prices for consumers rising at a rapid rate, many workers have secured pay rises to counteract the higher cost of living.

The Resolution Foundation said people would have paid income tax at around £16,200 instead of the current threshold of £12,570 if the Government had increased the personal tax allowance with inflation to 2028.

This means most basic rate taxpayers would pay £720 more a year.

A spokesperson for HMRC said:

"Driving down inflation is the most effective tax cut we can deliver right now"

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