Income tax receipts have fallen by 0.8pc against their forecast of a 6.5pc rise for the year, say the OBR. Strong employment but low wages means more workers entering the labour force now earn the new tax-free allowance of £10,000 before they start paying income tax. Lagging wage growth also means that more and more of us are being pulled back into lower income tax brackets, also hurting the Exchequer.