Skip to content
Wednesday 19 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,728.04
+0.07%
DAX
26,128.36
-0.80%
CAC 40
8,509.36
0.00%
STOXX 50
6,468.17
-0.95%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Wednesday 01 April 2015 9:39 am

Ed Balls fails to rule out lowering the threshold for the 40p rate

By: Jeff Misenti

Add as a preferred source on Google

Ed Balls has failed to rule out dragging more people into the 40p tax bracket.

The shadow chancellor said the country still faced a £90bn deficit and could not guarantee the 40p threshold would not be lowered. The higher rate applies to those earning £41,865.

In an interview with ITV News,  Balls said:

What I’d like to do is find ways I could have fewer people in the 40 per cent tax bracket. Of course I would.

But I have to be honest with people. The deficit will be £90bn. I have to find a way to get the deficit down in a careful, staged, balanced way.

Thanks to a failure to adjust, tax thresholds have resulted in 3m more people paying the 40p rate between 1990 and 2013/14. Should the Tories win the election and make good on their promise to raise the threshold to £50,000 more than 5m people will still fall into the higher rate bracket.

Many of those now paying the rate were not those intended to be hit by it when Nigel Lawson cut the tax from 60 per cent to 40 per cent in the 1988 budget. Police constables and head teachers are among the groups of workers who could be liable for the rate.

Balls added that Labour will reintroduce the 50p rate for those earning £150,000 a year and said there will be no rise in VAT.

Conservative Party chairman Grant Shapps didn't miss a beat, immediately accusing Labour of wanting to hike taxes substantially.

"This confirms suspicions that Labour will hit hardworking people with a £3,028 tax rise for the average working household," said Shapps.

It should be noted that think tank the Institute for Fiscal Studies lambasted the Tories' claim that Labour planned to raise the average families tax bill by more than £3,000.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Related Topics

  • General Election 2015

Trending Articles

  • As it happened: FTSE 100 drops as oil prices rise after Trump makes Hormuz threat

  • Jobless Banquet: Youth unemployment surge ‘sends Neets to KFC’

  • US bond market jitters spark UK economy recession warning

  • Monzo chair makes early exit after boardroom rift

  • Aldi boss wades into supermarket ‘price-gouging’ row

More from Morning Wire

  • Foxtons hits out at Renters’ Rights Act as profit halves

    Property
    Foxtons is London's largest lettings agency brand
  • Pensioners hit with £8bn tax bill after government freezes allowances

    Personal Finance
    City economists have warned that the triple lock pension is unsustainable and unaffordable given the state of the UK's public finances.
  • Wealthy Brits fear Burnham tax consequences

    Personal Finance
    Andy Burnham, Mayor of Greater Manchester, speaking at a podium with microphones.
  • How can wealthy Scots save £46,000 on income tax? Commute from England

    Tax
    Baillie Gifford runs three of the trusts targeted by Saba Capital.
  • Andy Burnham should start by scrapping the £100k tax trap

    Opinion
    Burnham cityscape showcasing modern architecture, bustling streets, and vibrant community life in a thriving urban setting
  • Can John Healey deliver Burnham’s make-or-break devolution agenda?

    Economics
    John Healey, in a red tie, speaking with Andy Burnham, wearing glasses and a dark blue jacket, outdoors.
  • IHT receipts hit record high as Rachel Reeves’ frozen bands raid plague Brits

    Personal Finance
    Inheritance tax receipts are on track for a record breaking year
  • Burnham’s high street tax plan carries £880m price tag

    Retail
    High streets emptied out as retail sales fell in May.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook