Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of increasing the threshold for the (a) 45 per cent tax rate to £150,000 and (b) 40 per cent tax rate to £60,000 on the public purse.

The Government must ensure the tax system supports strong public finances and it is right that higher earning households shoulder the most burden.

The additional rate threshold of income tax is set at £125,140 for 2023-2024. This was announced at Autumn Statement 2022 and was taken as part of a number of decisions to support public finances. Only the top 2 per cent of taxpayers are affected by this change.

The higher rate threshold is high enough to protect the vast majority of people from paying the higher rate of income tax. Around 80 per cent of all income taxpayers pay at the basic rate.

The Government’s approach to delivering fiscal sustainability is underpinned by fairness, with those on the highest incomes paying a larger share.