Will UK politicians fix the £100,000 tax trap?
Why now
Thesis: UK tax trap squeezes household spending
Catalyst to watch: Autumn Budget or threshold policy change
Main risk: Fiscal drag deepens consumer slowdown
Why it matters
UK fiscal drag from frozen thresholds reduces household disposable income, a slow macro headwind.
Details
The tax-free personal allowance starts to be withdrawn once earnings hit £100,000 and individuals may pay more in taxes and student loan repayments than they take home. With tax thresholds frozen until 2031, an estimated 500,000 additional workers are expected to be affected by this 'tax trap', wr
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- youtube · 2026-09-29 10:52 UTC