Chancing Chancellor

July 22nd, 2015

Chancellor George Osborne’s aim to raise the higher rate income tax threshold to £50,000 by 2020 sounds good, says the Financial Times, but the government’s own projections are that by then, wages will have risen by 24%, and the £50,000 target is only 18% above next year’s £43,000 level. The result is that by 2020, the number of higher rate taxpayers will swell by a further 340,000 to 5.3 million.

Like most Chancellors, Mr Osborne is good at positive spin, but his current plans include no big tax cuts for middle earners.