Chancellor Rachel Reeves’ internet price, wage, and the way a lot tax she pays

Chancellor Rachel Reeves will deliver the latest budget which will affect the UK economy and how much money Brits have left in their pocket.

While Brits have been warned to expect tax hikes and spending cuts in a bid to plug the £22 billion black hole left by the former Tory Government, it’s left some people wondering how much the Chancellor actually gets paid. As she prepares to reveal some big decisions on spending, welfare and tax, delivering the first Labour Budget in 15 years, we take a look at her personal financial affairs.

The Chancellor of the Exchequer is the UK government’s chief financial minister and is responsible for growing the economy and controlling public spending. Ms Reeves is thought to be paid around £150,000 a year now Labour are in power.

But she’s not the only earner in the household. Her husband is civil servant Nick Joicey, who was allegedly earning between £170,000 and £174,999 in 2022 as director general of the Economic and Domestic Secretariat at the Cabinet Office, the Express reports.

Before she came into power, she was reportedly earning £86,000 a year and said she ‘winced’ at her bank balance after forking out for her mortgage, gas, electricity and food bills. “What makes me wince is when I look at my bank statement and I find that the money coming in is increasingly short of the money going out,” she told GB News.

“Whether it’s the mortgage, or the gas and electricity bills, the weekly shop, or all of the money we all spend over Christmas, it is putting a huge toll on family finances and I think very few people are not feeling the effects of that today.”

During the build up to the election, Labour promised not to raise taxes for ordinary people, with the party’s manifesto stating: “We will not increase National Insurance, the basic, higher or additional rates of Income Tax, or VAT”. However, the Chancellor is allegedly considering extending the freeze on income tax thresholds which could push more people into paying higher rates.

Thresholds normally rise in line with inflation but Rishi Sunak imposed a freeze in 2021 to claw back cash after the Covid pandemic. It means more people are dragged into paying income tax – and higher earners can end up moving to another tax band. If Rachel Reeves extends the freeze more people could move into a different band which means some people may end up paying more tax.

How much tax people pay in the UK depends on how much they earn but people can earn up to £12,570 tax-free, before paying 20 per cent tax on everything between £12,570 and £50,270. Income above that is taxed at the higher rate of 40 per cent up to £125,140, after which there is a 45 per cent additional rate. So as Rachel Reeves earns around £150k she will be expected to pay the highest tax rate of 45 per cent.