Key facts
- Revolut and banking rivals have urged Chancellor John Healey to raise the threshold for the additional rate of income tax.
- Unions met Healey to press their demands ahead of the upcoming budget.
- Unite called for a reversal of the freeze on tax thresholds, which has increased the tax burden on lower earners.
- Unison proposed increasing taxes on large tech companies to fund public sector investment and green energy transition.
- GMB leader Gary Smith advocated for approving new oil and gas fields in the North Sea to boost revenue.
- Chancellor Healey indicated that tough choices would be made but aimed to provide businesses and workers with breathing room.
Revolut and other banking rivals have urged UK Chancellor John Healey to raise the threshold for the additional rate of income tax in the upcoming budget. The call comes as unions also presented their demands to Healey, advocating for a reversal of the freeze on tax thresholds that has led to lower-paid individuals paying income tax for the first time.
Unite, the UK's second-largest union, specifically called for the tax threshold, which currently stands at £12,571, to be increased. The union stated that if the threshold had been uprated with inflation, it would now be over £16,000, highlighting the significant tax burden on lower earners. The basic rate of 20% applies to earnings between £12,571 and £50,270, while the higher rate of 40% applies to earnings between £50,271 and £125,140.
Unison, the country's largest union, proposed increasing taxes on large tech companies to finance public sector investment and the transition to green energy. They also suggested the Treasury research a shift in taxation from income to wealth. GMB, the third-largest union, advocated for raising revenue from oil and gas industries by approving new fields in the North Sea, arguing it would be beneficial for jobs, the economy, and the environment by reducing reliance on imports.
Healey acknowledged that tough choices would be necessary but reiterated his commitment to providing businesses and workers with some relief. He is scheduled to meet with industry experts, trade unions, and TUC officials in the coming weeks. The government also maintains that a decision on the Rosebank and Jackdaw fields is a quasi-judicial matter.