Stuart Trow, Columnist

British Families Are Already Being Hit by Stealth Taxes

Thanks to inflation, more people will be paying a lot more tax than they realize.

November 15, 2022 at 12:00 AM EST

Stuart Trow is co-host of “Money, Money, Money” on Switch Radio and author of “The Bluffer’s Guide to Economics.” Previously, he was a strategist at the European Bank for Reconstruction and Development.

Let's talk taxes.
Photographer: Matthew Horwood/Getty Images Europe

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Brits are awaiting Thursday’s Autumn Statement with even more trepidation than usual. Less-than-subtle hints from ministers have signaled sharp tax increases that would compound the cost-of-living crisis.

What fewer may appreciate, though, is that due to idiosyncrasies in the tax system, many people have been paying higher stealth taxes for years. Now thanks to rising inflation, more and more families on relatively modest incomes, especially those with young children, might be subject to marginal tax rates well in excess of 60%.

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