Higher tax rate to hit 750,000 more people, says IFS

Three-quarters of a million more people are set to become higher-rate taxpayers in April, according to a leading economic research body.

The Institute for Fiscal Studies (IFS) estimates the average household will be £200 a year worse off as a result of tax rises and benefit cuts taking effect on 5 April.

At present there are more than 30 million income tax payers in the UK.

Hugh Pym reports.