Publish the economic impact of removing or raising the £100k tax cliff edge

Model and publish the economic impact of removing or raising the £100k taxable income cliff edge. The loss of personal allowance and loss of entitlement to free childcare hours means those who earn over £100k face a disproportionately high marginal tax rate. Between £100-£125k this can exceed 100%.

1,887 Signatures

Status
Open
Opened
Thursday 17th April 2025
Last 24 hours signatures
2
Signature Deadline
Friday 17th October 2025
Estimated Final Signatures: 2,098

Reticulating Splines

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There are tens of thousands of tax payers who have to artificially lower their income to avoid punitively high tax rates above £100k.

This results in people reducing their working hours, over contributing to pensions (resulting in economic inactivity), and sacrificing disposable income today which could benefit economic growth.

Treasury should model and publish the benefit of removing or raising these thresholds, inc. the impact on tax receipts for the higher taxable pay that would result.


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Reticulating Splines