The proposal is a bold new approach to income tax: a single, proportional tax rate of 35%. This will replace the existing tiered system and be partially offset by the complete removal of the Employee National Insurance charge.

This change moves the UK to a proportional tax system. Under this model, those who earn more will continue to pay more tax. By removing the higher rates, we are eliminating a negative emotional barrier that can discourage people from pursuing higher earnings. Instead, this proportional system creates a strong incentive for individuals to strive for better-paying roles, boosting ambition and economic growth.

We believe this approach is fairer for all. When you consider the effective tax rate—the total tax paid as a percentage of income—our proposal demonstrates a progressive increase, with higher earners paying a greater share.

Despite this dramatic shift, income tax will remain the single largest source of tax revenue for the government.

Let's examine how this change impacts different income levels: