The Independent
UK · 17 mins ago
UK could lose 2million workers if taxes keep rising, OBR warns
Up to two million people could leave the UK workforce if taxes continue to rise over the coming decades, an official analysis from the Office for Budget Responsibility (OBR) shows. But economists have stressed the number is based on a long-term hypothetical scenario and extreme circumstances, rather than a forecast. The warning stems from the OBR’s latest fiscal risks report, which models what could happen if income tax thresholds continued to be frozen for decades while earnings kept rising.Under that scenario, growing numbers of workers would be pulled into higher tax bands through fiscal drag, potentially reducing incentives to work, remain in the UK or save.The OBR estimates that, if such a policy were maintained unchanged until 2075, labour supply could fall by around two million peop
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