Income tax increase for the poor

As he did in 1997 Gordon Brown has increased income tax while being able to hide under a headline reduction in the basic rate.

By increasing the 10% band to 20% he has increased the most significant part of lower-earner's tax burden. Simultaneously reducing the 22% band to the same 20% improves the lot only of those earning amounts in the high end of the basic rate band.

And as if that wasn't bad enough news for those on low incomes (and I think it is), the higher rate has been increased so that the richer get richer still...

A Conservative government would be embarrased by this settlement, Labour should be more so.

The answer should have been to increase the tax allowance significantly and to leave the basic rate at 22% and increase the higher rate band too. What a missed opportunity.

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