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Политика

The top income tax bands are now catching one in four payers in London and the South East.

Sarah Olney, Liberal Democrat Treasury Representative Photo: ©UK Parliament/Jessica Taylor

One in four taxpayers in London and the South The study found that the East now pays a higher income tax rate.

The revelation comes amid claims that Rishi Sunak has imposed «hidden taxes» on workers by freezing the income tax threshold.

< p>According to an analysis of HMRC data by the Liberal Democrats, nearly 2.5 million people in London and the South East pay income tax at either a 40% rate or a 45% surcharge, more than double than one million. who paid 40 pence in 1999.

In London, 27.3% of taxpayers are currently in the 40p or 45p tax bracket, more than anywhere else in the country, followed by the South East at 22.7%. This compares to a national figure of 18% of taxpayers across the UK paying 40p or 45p.

HMRC data shows that 5.6 million people are projected to pay the 40p rate in 2023-24. the number of people in this group has increased by almost 41% compared to 2020-2021. Meanwhile, the number of surcharge income tax payers nearly doubled to 862,000 over the same period.

In a statement last year in the fall, the government froze income tax thresholds until 2028 instead of raising them due to rising cost of living, putting many people in higher tax brackets.

In the south of England, Liberal Democrats refer to these «hidden taxes» in campaign materials aimed at attracting voters to wealthy Blue Wall seats that traditionally vote Conservative.

Sarah Olney, Liberal Democrat Treasury spokesperson , said: The Conservative Party is turning its back on its former center, burdening families with endless hidden taxes and skyrocketing mortgage costs.

«People are seeing their incomes mercilessly dwindling and there's no end in sight to this cost-of-living nightmare,» said Ms. Olney.

“Rishi Sunak could relieve the pain. Instead, he is making ordinary families pay the price for years of conservative chaos and mismanagement.»

A UK Treasury spokesman said: «We have the highest starting thresholds for personal tax benefits in the G7 and we are committed to ensuring that work is paid while while we stick to our plan to halve inflation.

“That's why we've achieved a record increase in the National Living Wage and increased personal tax thresholds so that for the first time in history, a person can earn £1,000 a month without paying taxes or the government. insurance. This has completely freed the bottom 3 million people from paying taxes.

“After we have borrowed hundreds of billions of pounds to finance the pandemic and support energy bills, our tax system is helping to restore public finances in in the fairest way, when those who earn the most bear the greatest burden.”

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