Introduce an income tax system where the 20% starting rate rises 1% every £5k up to 40% then every £10k up to 45%. Set the tax free personal allowance at the amount someone would earn from 39hrs work a week at minimum wage. We think it will help a smooth transition and boost funds to vital services.
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We think the current tax bands unfairly burden middle-income earners with sudden jumps, and that a gradual tax increase from 20% to 45% would prevent financial strain while ensuring fairness. We think this could generate an extra £25–32 billion annually, which could be used for strengthening the NHS, education, and infrastructure. In our view, taxing higher incomes progressively while protecting low earners, creates a sustainable, balanced economy that rewards work and funds national priorities.