Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the total amount of (a) income tax and (b) employee national insurance paid by a full time minimum wage worker in (i) 2024-25 and (ii) 2025-26.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The information requested on the impact on taxpayer numbers as a result of threshold freezes is published as part of the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO). The published table sets out the estimated numbers of taxpayers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information is updated in the EFO in each fiscal event. An excerpt from Table 3.18 from the October 2024 EFO:
3.18 Effect of threshold freezes on additional taxpayers | |||
| Million |
|
|
|
| Forecast |
|
| 2023-24 | 2024-25 | 2025-26 |
Number of taxpayers |
|
|
|
With indexation | 34.1 | 34.3 | 35.1 |
Without indexation | 36.2 | 37.6 | 38.6 |
…brought into income tax | 2.2 | 3.3 | 3.5 |
Number of higher-rate taxpayers |
|
|
|
With indexation | 4.7 | 4.4 | 4.5 |
Without indexation | 6.1 | 6.6 | 7.0 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 |
Number of additional-rate taxpayers |
|
|
|
Previous £150,000 threshold | 0.7 | 0.7 | 0.8 |
Aligned to the end of PA taper | 0.9 | 1.1 | 1.2 |
…brought into additional-rate band | 0.3 | 0.4 | 0.4 |
…brought into higher and additional rates | 1.6 | 2.6 | 2.9 |
As shown in the table, 3.5 million more individuals are expected to pay income tax in 2025-26 as a result of the threshold freezes.
The number of Higher rate taxpayers is expected to increase from 6.6 million in 2024-25 to 7.0 million in 2025-26 (a rise of 0.4 million), and additional rate taxpayer numbers are expected to increase from 1.1 million to 1.2 million (a rise of 0.1 million).
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
The latest ONS estimate for median earnings for 2023-24 is £31,602, and this can be projected using OBR’s average earnings growth forecasts, which gives an estimate of median earnings for 2024-25 of £33,035 and 2025-26 of £34,011. An individual with solely income from these earnings would expect to have total Income Tax and Employee National Insurance liabilities of £5,730 in 2024-25 and £6,003 in 2025-26.
Individuals aged 21 and over earning minimum wage and working 35 hours per week would be expected to earn £20,821 and £22,222 in tax years 2024-25 and 2025-26 respectively. These would result in Income Tax and Employee National Insurance liabilities of:
£1,650 and £660 in 2024-25,
£1,930 and £772 in 2025-26.
Further information on the ONS data for median earnings can be found in their annual publication: 2024 provisional earnings and hours worked, all employees (ons.gov.uk)
Earnings growth forecasts are published in the OBR’s forecast tables: October 2024 Detailed forecast tables: Economy (obr.uk)
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the total amount of tax someone on the median salary will pay in financial year (a) 2024-25 and (b) 2025-26.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The information requested on the impact on taxpayer numbers as a result of threshold freezes is published as part of the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO). The published table sets out the estimated numbers of taxpayers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information is updated in the EFO in each fiscal event. An excerpt from Table 3.18 from the October 2024 EFO:
3.18 Effect of threshold freezes on additional taxpayers | |||
| Million |
|
|
|
| Forecast |
|
| 2023-24 | 2024-25 | 2025-26 |
Number of taxpayers |
|
|
|
With indexation | 34.1 | 34.3 | 35.1 |
Without indexation | 36.2 | 37.6 | 38.6 |
…brought into income tax | 2.2 | 3.3 | 3.5 |
Number of higher-rate taxpayers |
|
|
|
With indexation | 4.7 | 4.4 | 4.5 |
Without indexation | 6.1 | 6.6 | 7.0 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 |
Number of additional-rate taxpayers |
|
|
|
Previous £150,000 threshold | 0.7 | 0.7 | 0.8 |
Aligned to the end of PA taper | 0.9 | 1.1 | 1.2 |
…brought into additional-rate band | 0.3 | 0.4 | 0.4 |
…brought into higher and additional rates | 1.6 | 2.6 | 2.9 |
As shown in the table, 3.5 million more individuals are expected to pay income tax in 2025-26 as a result of the threshold freezes.
The number of Higher rate taxpayers is expected to increase from 6.6 million in 2024-25 to 7.0 million in 2025-26 (a rise of 0.4 million), and additional rate taxpayer numbers are expected to increase from 1.1 million to 1.2 million (a rise of 0.1 million).
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
The latest ONS estimate for median earnings for 2023-24 is £31,602, and this can be projected using OBR’s average earnings growth forecasts, which gives an estimate of median earnings for 2024-25 of £33,035 and 2025-26 of £34,011. An individual with solely income from these earnings would expect to have total Income Tax and Employee National Insurance liabilities of £5,730 in 2024-25 and £6,003 in 2025-26.
Individuals aged 21 and over earning minimum wage and working 35 hours per week would be expected to earn £20,821 and £22,222 in tax years 2024-25 and 2025-26 respectively. These would result in Income Tax and Employee National Insurance liabilities of:
£1,650 and £660 in 2024-25,
£1,930 and £772 in 2025-26.
Further information on the ONS data for median earnings can be found in their annual publication: 2024 provisional earnings and hours worked, all employees (ons.gov.uk)
Earnings growth forecasts are published in the OBR’s forecast tables: October 2024 Detailed forecast tables: Economy (obr.uk)
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of taxpayers set to pay the additional rate of income tax in financial year 2025-26 compared with financial year 2024-25.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The information requested on the impact on taxpayer numbers as a result of threshold freezes is published as part of the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO). The published table sets out the estimated numbers of taxpayers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information is updated in the EFO in each fiscal event. An excerpt from Table 3.18 from the October 2024 EFO:
3.18 Effect of threshold freezes on additional taxpayers | |||
| Million |
|
|
|
| Forecast |
|
| 2023-24 | 2024-25 | 2025-26 |
Number of taxpayers |
|
|
|
With indexation | 34.1 | 34.3 | 35.1 |
Without indexation | 36.2 | 37.6 | 38.6 |
…brought into income tax | 2.2 | 3.3 | 3.5 |
Number of higher-rate taxpayers |
|
|
|
With indexation | 4.7 | 4.4 | 4.5 |
Without indexation | 6.1 | 6.6 | 7.0 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 |
Number of additional-rate taxpayers |
|
|
|
Previous £150,000 threshold | 0.7 | 0.7 | 0.8 |
Aligned to the end of PA taper | 0.9 | 1.1 | 1.2 |
…brought into additional-rate band | 0.3 | 0.4 | 0.4 |
…brought into higher and additional rates | 1.6 | 2.6 | 2.9 |
As shown in the table, 3.5 million more individuals are expected to pay income tax in 2025-26 as a result of the threshold freezes.
The number of Higher rate taxpayers is expected to increase from 6.6 million in 2024-25 to 7.0 million in 2025-26 (a rise of 0.4 million), and additional rate taxpayer numbers are expected to increase from 1.1 million to 1.2 million (a rise of 0.1 million).
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
The latest ONS estimate for median earnings for 2023-24 is £31,602, and this can be projected using OBR’s average earnings growth forecasts, which gives an estimate of median earnings for 2024-25 of £33,035 and 2025-26 of £34,011. An individual with solely income from these earnings would expect to have total Income Tax and Employee National Insurance liabilities of £5,730 in 2024-25 and £6,003 in 2025-26.
Individuals aged 21 and over earning minimum wage and working 35 hours per week would be expected to earn £20,821 and £22,222 in tax years 2024-25 and 2025-26 respectively. These would result in Income Tax and Employee National Insurance liabilities of:
£1,650 and £660 in 2024-25,
£1,930 and £772 in 2025-26.
Further information on the ONS data for median earnings can be found in their annual publication: 2024 provisional earnings and hours worked, all employees (ons.gov.uk)
Earnings growth forecasts are published in the OBR’s forecast tables: October 2024 Detailed forecast tables: Economy (obr.uk)
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of additional individuals her Department expects to pay tax in financial year 2025-26 as a result of the freeze on income tax thresholds.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The information requested on the impact on taxpayer numbers as a result of threshold freezes is published as part of the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO). The published table sets out the estimated numbers of taxpayers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information is updated in the EFO in each fiscal event. An excerpt from Table 3.18 from the October 2024 EFO:
3.18 Effect of threshold freezes on additional taxpayers | |||
| Million |
|
|
|
| Forecast |
|
| 2023-24 | 2024-25 | 2025-26 |
Number of taxpayers |
|
|
|
With indexation | 34.1 | 34.3 | 35.1 |
Without indexation | 36.2 | 37.6 | 38.6 |
…brought into income tax | 2.2 | 3.3 | 3.5 |
Number of higher-rate taxpayers |
|
|
|
With indexation | 4.7 | 4.4 | 4.5 |
Without indexation | 6.1 | 6.6 | 7.0 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 |
Number of additional-rate taxpayers |
|
|
|
Previous £150,000 threshold | 0.7 | 0.7 | 0.8 |
Aligned to the end of PA taper | 0.9 | 1.1 | 1.2 |
…brought into additional-rate band | 0.3 | 0.4 | 0.4 |
…brought into higher and additional rates | 1.6 | 2.6 | 2.9 |
As shown in the table, 3.5 million more individuals are expected to pay income tax in 2025-26 as a result of the threshold freezes.
The number of Higher rate taxpayers is expected to increase from 6.6 million in 2024-25 to 7.0 million in 2025-26 (a rise of 0.4 million), and additional rate taxpayer numbers are expected to increase from 1.1 million to 1.2 million (a rise of 0.1 million).
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
The latest ONS estimate for median earnings for 2023-24 is £31,602, and this can be projected using OBR’s average earnings growth forecasts, which gives an estimate of median earnings for 2024-25 of £33,035 and 2025-26 of £34,011. An individual with solely income from these earnings would expect to have total Income Tax and Employee National Insurance liabilities of £5,730 in 2024-25 and £6,003 in 2025-26.
Individuals aged 21 and over earning minimum wage and working 35 hours per week would be expected to earn £20,821 and £22,222 in tax years 2024-25 and 2025-26 respectively. These would result in Income Tax and Employee National Insurance liabilities of:
£1,650 and £660 in 2024-25,
£1,930 and £772 in 2025-26.
Further information on the ONS data for median earnings can be found in their annual publication: 2024 provisional earnings and hours worked, all employees (ons.gov.uk)
Earnings growth forecasts are published in the OBR’s forecast tables: October 2024 Detailed forecast tables: Economy (obr.uk)
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of taxpayers set to pay the higher rate of income tax in financial year 2025-26 compared with financial year 2024-25.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The information requested on the impact on taxpayer numbers as a result of threshold freezes is published as part of the Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO). The published table sets out the estimated numbers of taxpayers with and without indexation of the thresholds and the impact of the thresholds being frozen. This information is updated in the EFO in each fiscal event. An excerpt from Table 3.18 from the October 2024 EFO:
3.18 Effect of threshold freezes on additional taxpayers | |||
| Million |
|
|
|
| Forecast |
|
| 2023-24 | 2024-25 | 2025-26 |
Number of taxpayers |
|
|
|
With indexation | 34.1 | 34.3 | 35.1 |
Without indexation | 36.2 | 37.6 | 38.6 |
…brought into income tax | 2.2 | 3.3 | 3.5 |
Number of higher-rate taxpayers |
|
|
|
With indexation | 4.7 | 4.4 | 4.5 |
Without indexation | 6.1 | 6.6 | 7.0 |
…brought into higher-rate band | 1.4 | 2.2 | 2.5 |
Number of additional-rate taxpayers |
|
|
|
Previous £150,000 threshold | 0.7 | 0.7 | 0.8 |
Aligned to the end of PA taper | 0.9 | 1.1 | 1.2 |
…brought into additional-rate band | 0.3 | 0.4 | 0.4 |
…brought into higher and additional rates | 1.6 | 2.6 | 2.9 |
As shown in the table, 3.5 million more individuals are expected to pay income tax in 2025-26 as a result of the threshold freezes.
The number of Higher rate taxpayers is expected to increase from 6.6 million in 2024-25 to 7.0 million in 2025-26 (a rise of 0.4 million), and additional rate taxpayer numbers are expected to increase from 1.1 million to 1.2 million (a rise of 0.1 million).
The full table is available as Table 3.18 in the detailed forecast of receipts: October 2024 Economic and fiscal outlook – detailed forecast tables: receipts (obr.uk)
The latest ONS estimate for median earnings for 2023-24 is £31,602, and this can be projected using OBR’s average earnings growth forecasts, which gives an estimate of median earnings for 2024-25 of £33,035 and 2025-26 of £34,011. An individual with solely income from these earnings would expect to have total Income Tax and Employee National Insurance liabilities of £5,730 in 2024-25 and £6,003 in 2025-26.
Individuals aged 21 and over earning minimum wage and working 35 hours per week would be expected to earn £20,821 and £22,222 in tax years 2024-25 and 2025-26 respectively. These would result in Income Tax and Employee National Insurance liabilities of:
£1,650 and £660 in 2024-25,
£1,930 and £772 in 2025-26.
Further information on the ONS data for median earnings can be found in their annual publication: 2024 provisional earnings and hours worked, all employees (ons.gov.uk)
Earnings growth forecasts are published in the OBR’s forecast tables: October 2024 Detailed forecast tables: Economy (obr.uk)
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the average annual cost of a five year fixed rate mortgage (a) on the week commencing 21 October 2024 and (b) in January 2025.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The pricing and availability of mortgages is ultimately a commercial decision for lenders, in which the Government does not intervene. Changes in offered mortgage rates are broadly driven by changes in financial market expectations for Bank Rate.
Monetary policy, including decisions on Bank Rate, is the responsibility of the independent Monetary Policy Committee (MPC) at the Bank of England. The Government remains committed to monetary policy independence and supporting the MPC to return inflation to target sustainably, and does not comment on the conduct or effectiveness of monetary policy.
External organisations, such as the Bank of England and Moneyfacts, track movements in offered mortgage rates.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of Autumn Budget 2024 on recent trends in the level of mortgage rates.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Office for Budget Responsibility (OBR) is the UK’s official forecaster of the economy and public finances. The OBR published its assessment of the UK economy, and the effect of policies announced at the 2024 Autumn Budget, in its October 2024 Economic and Fiscal Outlook.
The OBR will publish its next assessment of the UK economy on 26 March 2025, as commissioned by the Chancellor.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of wealthy taxpayers leaving the UK on levels of (a) economic growth and (b) tax receipts.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible.
As part of this, the Government is increasing the main rates of Capital Gains Tax (CGT) to 18 and 24 per cent, while ensuring the UK tax system remains internationally competitive.
At the Budget, the Government also confirmed its plans to remove the outdated concept of domicile status from the tax system and to replace it with a new residence-based regime from 6 April 2025, which is internationally competitive and focused on attracting the best talent and investment to the UK. The OBR have certified that the package of non-dom reforms the Government is legislating will raise £33.8bn in total revenue over the five-year forecast period. These reforms will ensure that everyone who makes their home in the UK pays their taxes here.
These and other decisions announced at the Budget will help repair the public finances and fund public services such as the NHS and education.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the of the potential impact of (a) agricultural and (b) business property relief on ancient woodlands.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of her economic policies at attracting people to list shares in London.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The UK has recently attracted several high-profile listings from firms taking advantage of our reforms to make it easier to raise capital and fund growth on UK markets.
This includes IPOs from high-growth UK firms such as Raspberry Pi and Applied Nutrition, as well as listings from prominent international firms such as Canal+ and CK Infrastructure.
More broadly, in 2024 more capital was raised on UK equity markets than the next three European exchanges combined.