Source · Select Committees · Treasury Committee
Recommendation 5
5
Acknowledged
Cliff-edges remain present elsewhere.
Conclusion
Cliff-edges remain present elsewhere. Certain income levels also attract unusually high marginal tax rates or the loss of means-tested entitlements. Such features are distortionary. The Treasury should endeavour to smooth them wherever possible, in areas of its own responsibility, and when considering funding requests from departments. We will return to this issue in future. (Paragraph 25) Autumn Statement 2022 – Cost of living payments 13
Government Response Summary
The Government continues to consider marginal tax and deduction rates in policy to work to improve incentives in the system, ensuring that it always pays to work and that the greatest burden falls on those with the broadest shoulders, whilst protecting the most vulnerable in society.
Government Response
Acknowledged
HM Government
Acknowledged
The Government continues to consider marginal tax and deduction rates in policy to work to improve incentives in the system, ensuring that it always pays to work and that the greatest burden falls on those with the broadest shoulders, whilst protecting the most vulnerable in society. We look forward to the Committee returning to this issue in the future.