Stephen McPartland, the MP for Stevenage, said he was urging Hammond to lower the “taper rate” on universal credit again to encourage people receiving in-work benefits to increase their hours without seeing so much of their additional pay taken away.
Hammond bowed to pressure from Conservative MPs at the autumn statement last year, reducing the taper rate from 65% to 63% at a cost of around £1bn over five years.
At the very worst the taper rate should be no higher than the top marginal income tax rate. For the same reason. That Laffer Curve exists and there’s somewhere between no and little evidence to say that it works differently dependent upon income band. Rates that are too high are too high.
Sure, holes blown in budgets and all that but let’s get the basics right before we construct those perhaps?