Chancellor Kwasi Kwarteng revealed a tax cut for millions of workers as he reversed a previous National Insurance hike.
And he also brought forward a planned cut to the basic rate of income tax.
But a freeze on tax bands remains in place, meaning as people earn more they face paying more tax.
Around 5million workers are expected to be dragged into paying tax over the next four years because their income will go over the tax-free personal allowance of £12,570.
A further 3.9million middle-income earners will be pulled into the 40% tax bracket as wages increase over time.
That’s according to forecasts by the Centre for Economics and Business Research (CEBR).
The thresholds for income tax generally rise each year so that people can earn more without paying more tax.
But the tax bands were frozen by former Chancellor Rishi Sunak in 2021 until 2026.
Basic rate tax payers pay 20% on earnings over £12,570, while higher rate payers are charged 40% on earnings over £50,270.