Simon Lambert

And above 125,140, you pay the 45% rate.

There is, however, an unofficial income tax band, which is 60%, and that is not paid by the people earning the most.

Instead, it's paid by people earning between £100,000 and £125,140 because they have their personal allowance removed at a rate of 80%.

£1 for every extra £2 that they earn.

And that creates an effective marginal tax rate, which is the tax that you pay on the next pound earned, of 60%.

So actually, tax bands in this country go 20%, 40%, 60%, 45%.

Why are so many people suddenly paying 45% tax?

It is, as you say, epic fiscal drag, but it's not just the normal fiscal drag where the threshold remains frozen.

It's the kind of fiscal drag where someone...

decides to lower the threshold from £150,000 to £125,140.

Strangely precise number to lower it to, and that's because it's right at the top of that 60% tax trap.

And the person who did this, as you said...

Was not Rachel Reeves.

This is a tax grab that you cannot blame on Rachel Reeves.

Rachel Reeves has continued the tax grab and frozen tax thresholds until the end of time, I believe, at which point everyone will eventually be paying 45 percent tax.

But this one is not her fault.

This one is Jeremy Hunt's fault.

Jeremy Hunt came in as Chancellor after the ill-fated and short-lived stint that Kwasi Kwarteng enjoyed.

One of the things that Kwasi Kwarteng did in his mini-budget, Kwasi Kwarteng actually removed the 45p top rate of tax.

That didn't last very long because Kwasi Kwarteng had to be thrown out on his ear.