Social Sector? well you need to work from the basis that there's no public sector without the private sector. To be a net contributor you need to be earning around 48k GBP or somewhere in that region. Therefore there is a 'bite point' of a social contract between those on 48k and over and the government. Helping the 600k people that earn over 150k sounds like a bad idea but each person in the 150k+ bracket pays 5-6x the amount of tax someone on 27k earns, therefore, retention of this small pool of 600k people is critical otherwise, those on 27k end up paying more tax and their living standards drop as a result.
Work more? Well if you earn 1000pd from a 1850pd rate card (there's a large amount of corp. tax and vat in there that's paid as a result) and your missus earns 600pd-750pd doing tech. training. You don't actually gain much for working more regardless of tax rate unless you take on multiple roles because you are on day rate. I know people that do it (take multiple roles) but its risky.
For your average freelancer, tax rate cuts won't actually encourage you to do more work, the ideal situation is to do 4 days per week at that rate card and do it from a location in southern Spain where your mortgage is 100k euros for a 3 bedroom villa with a pool and raise a family.
Tax increases on the other hand, once they reach tax parity with places like Spain, Portugal and Greece encourage you to leave the U.K. Which, I was 100% dead cert on doing but now, its a pause for thought but I will probably end up going once Spain passes the Start-up law in December/January.
Would further tax cuts prevent me from going? Maybe, especially if VAT was cut to 10% but with the Sunak raids (mostly) reversed its the cost of property now that's the deciding factor.
petition.parliament.uk
