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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be pissed off about a potential 6 more years of frozen tax bands

41 replies

hangerup · 23/08/2025 20:32

I know the country is broke.
I know everybody needs to pay more tax but seriously another 6 yrs of frozen tax bands!!

We have had years of wage stagnation after never recovering from the 08 crash.

If you allow for inflation 53k today is the equivalent to 28k in the early 00s.

In the 90s less than 4% of workers paid the 40% higher rate & we have ridiculous cliff edges today.

This disproportionately impacts younger workers & I think it's wrong.

OP posts:
Trotula · 23/08/2025 20:42

Similarly the personal tax allowance of £12,570 with a state pension of just under £12,000, which falls well below the amount needed to live.
Huge disparity for the lowest earners too!

northernballer · 23/08/2025 20:49

Fiscal drag is probably the least of the problems we will all face with higher taxes tbh.

And no, I don't know what the solution is and nor do I envy the government of any colour trying to solve the state of public services.

chipsticksmammy · 23/08/2025 20:53

Want to swap for the Scottish ones?

I’m no better off than what I got in my hand in 2019 despite my best efforts.

Original poster
hangerup · 23/08/2025 20:55

Fiscal drag is probably the least of the problems we will all face with higher taxes tbh.

Is it?

And no, I don't know what the solution is and nor do I envy the government of any colour trying to solve the state of public services.

It's a fucking mess and will take years of cross party solutions to sort if it can even be sorted.

OP posts:
ClassicalQueen · 23/08/2025 20:55

The country needs more money through taxation and this is the best way to achieve it. Ideally we would cut expenditure as well but the current government don’t seem interested in that.

Original poster
hangerup · 23/08/2025 20:56

Want to swap for the Scottish ones?

Maybe when my dc reach uni age

OP posts:
SpaceRaccoon · 23/08/2025 20:56

Maybe when my dc reach uni age

Don't - it's even more punitive.

Original poster
hangerup · 23/08/2025 20:57

@ClassicalQueen why is this the best way to achieve it?

OP posts:
BlackBean2023 · 23/08/2025 20:58

The problem is we have a national health service that is struggling with demand - a lot of the demand comes through minor illness that could be easily treated at home or with a pharmacist 94 through illness caused by lifestyle choices - drink, drugs, obesity. Most taxpayers are deficit contributors- they don’t pay taxes that covers the services they need/use etc. There is little incentive to work for many young mothers - primarily - due to the high cost of childcare. There’s no jobs anyway. Wages have stagnated. House prices continue to increase. Utility costs and increases are out of control. Schools are underfunded and failing children - particularly children with SEN and white British boys.

We need to be paying more - but that includes those on lower salaries too so freezing the bands is the most effective way to do this - the only realistic alternative is to lower the bands.

I doubt Labour will win another term so there will be more turbulence over the next 6 years that just frozen tax bands!

chipsticksmammy · 23/08/2025 21:00

hangerup · 23/08/2025 20:56

Want to swap for the Scottish ones?

Maybe when my dc reach uni age

As a couple, we think would be better off living in England and paying uni fees for our DC.

Stamp Duty is higher here too obviously.

Original poster
hangerup · 23/08/2025 21:02

The demand comes from an ageing population, a sicker population post pandemic and years of underinvestment.

Most taxpayers are deficit contributors- they don’t pay taxes that covers the services they need/use etc.

This isn't unusual though and as a population ages the more thus increases.

There is little incentive to work for many young mothers - primarily - due to the high cost of childcare

Many mothers do work and people aren't even having dc these days.

We need to be paying more - but that includes those on lower salaries too so freezing the bands is the most effective way to do this - the only realistic alternative is to lower the bands.

Well it's true those on lower bands often pay more in other countries they don't quite have the fucked up housing market we have.

OP posts:
ClassicalQueen · 23/08/2025 21:06

hangerup · 23/08/2025 20:57

@ClassicalQueen why is this the best way to achieve it?

The majority of people pay income tax, earnings are going up and this pushes more people to pay higher levels of tax. How would you suggest we do it? I’m no expert but I can’t think of a way to raise more income without underfunding our much needed public services etc.

BlackBean2023 · 23/08/2025 21:07

I agree many mothers work but the people in receipt in universal credit are women - https://www.gov.uk/government/statistics/universal-credit-statistics-29-april-2013-to-9-january-2025/universal-credit-statistics-29-april-2013-to-9-january-2025#people-on-universal-credit

raising the expectation for absent fathers to pay more towards their children would be a good start too. CSA is paltry and the state picks up the slack.

Original poster
hangerup · 23/08/2025 21:10

@ClassicalQueen but earnings are low here & the wealth gap is widening because housing is so expensive. Taxing workers more isn't going to grow the economy.

OP posts:
MidnightPatrol · 23/08/2025 21:11

60% rate between £100-125k has been frozen since 2009….!

If it had been increased with inflation it would be at more like £180k - ignoring the secondary issue that it’s just utterly stupid to have the rate go up and then down again.

Original poster
hangerup · 23/08/2025 21:11

raising the expectation for absent fathers to pay more towards their children would be a good start too. CSA is paltry and the state picks up the slack.

but this isn't why we are in economic turmoil.

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Original poster
hangerup · 24/08/2025 08:24

60% rate between £100-125k has been frozen since 2009….!

That's crazy

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2sidesofcoins · 24/08/2025 08:43

I would remove all cliff edges and tax bands, they stop people working more and stifle growth.

whirlyhead · 24/08/2025 09:03

Here in Spain the personal allowance is about €5k and lower earners are taxed more than in England. If you want public services, someone has to pay for them.

ALunchbox · 24/08/2025 09:29

It doesn't bother me. And yes I'm affected. I'm happy to pay more tax if it makes things better for the country as a whole.

Charlthg · 24/08/2025 09:35

Someone’s got to pay for the millions on benefits, the out of control government spending and corrupt politicians.

There’s more of this to come. Anyone with any sense who is a productive member of society would do well to get out of this country and go somewhere where they are not constantly rinsed.

Biker47 · 24/08/2025 09:43

So much for no income tax rises, this is just a proxy income tax rise.

Q. How can you tell when a Labour politician is lying?
A. Their lips are moving.

OldYorkMum · 24/08/2025 10:09

It’s a bloody nonsense. I am heading towards retirement, so with every pay rise, I reduce my hours to stay under the 40% threshold. Lots of people I know do the same. And the government is annoyed that older people are economically inactive…

flightissue · 24/08/2025 10:12

ClassicalQueen · 23/08/2025 20:55

The country needs more money through taxation and this is the best way to achieve it. Ideally we would cut expenditure as well but the current government don’t seem interested in that.

No it doesn’t.

Original poster
hangerup · 24/08/2025 10:15

It doesn't bother me. And yes I'm affected. I'm happy to pay more tax if it makes things better for the country as a whole.

Increased taxes are needed just to pay debts, there isn't enough money to improve services...

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