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Trump demands homeless ‘immediately’ move out of Washington DC to make nation’s capital ‘more beautiful’

AUGUST 10, 2025

President Donald Trump has demanded that the homeless “immediately” move out of Washington, D.C. to make the nation’s capital “more beautiful.”

Trump reiterated his Saturday announcement that he’s set to hold a press conference at the White House on Monday, adding on Truth Social on Sunday that “I’m going to make our Capital safer and more beautiful than it ever was before.”

“The Homeless have to move out, IMMEDIATELY,” he continued. “We will give you places to stay, but FAR from the Capital. The Criminals, you don’t have to move out. We’re going to put you in jail where you belong.”

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The president went on to say that “It’s all going to happen very fast, just like the Border. We went from millions pouring in, to ZERO in the last few months. This will be easier — Be prepared! There will be no ‘MR. NICE GUY.’ We want our Capital BACK.”

Trump’s promise to jail criminals in Washington comes as the city’s mayor, Muriel Bowser, has noted that there’s no recent increase in crime. Trump didn’t outline what legal authority he would use to evict people from the capital — the president only controls federal lands and buildings in the District of Columbia.

Trump also took to Truth Social on Saturday to say that he was hosting a press conference that would put a stop to violent crime in Washington. The president’s Sunday post included images of tents and garbage on the streets of the capital.

The Community Partnership is an organization working to reduce homelessness in Washington, a city of 700,000 people. According to the group, on any given night, there are roughly 3,782 people experiencing homelessness. However, most of them are in emergency shelters or transitional housing, while about 800 are unsheltered or “on the street,” according to the group.

On Friday, a White House official said that extra federal law enforcement officers were being deployed in Washington after a group of teenagers reportedly attacked a young Trump administration staffer during an attempted carjacking, angering Trump.

Appearing on MSNBC on Sunday, Bowser said Washington was "not experiencing a crime spike."

"It is true that we had a terrible spike in crime in 2023, but this is not 2023," she said. "We have spent over the last two years driving down violent crime in this city, driving it down to a 30-year low."

The capital’s police department reported that violent crime in the first seven months of this year was down by 26 percent compared with 2024. Overall, crime was down roughly seven percent.

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Bowser noted that the president is “very aware” of Washington’s work alongside federal law enforcement after she met with him at the White House some weeks ago.

The mayor added on Sunday that Trump can call in the National Guard if he so chooses. The administration recently did so over the objection of local officials in response to immigration protests in Los Angeles.

The best golden visas - THE TELEGRAPH

AUGUST 11, 2025

Story by Liz Rowlinson

The urge to escape the UK remains strong among many families, who are fleeing from punitive tax changes, high inflation and increases in school fees.

Better employment opportunities, quality of life, EU access and tax perks are among the pull factors to Europe – or beyond.

Golden visa programmes, which came about after the 2008 financial crisis, offer residency in exchange for investment. They provide a permit that can begin the pathway to citizenship after five to 10 years if required, and if certain conditions are met. And for many of them, tax residency is optional.

They can be distinguished from so-called ‘golden passports’ that sell citizenship from the outset, notably offered by Malta and Grenada.

Both golden visas and passports are opposed by the European Union, and some national governments have ended or limited their schemes, particularly those that incentivise real estate investment which they have caused property prices to soar.

But of those that remain, which are best? It depends whether you want to claw back your EU status, relocate or save tax. The European golden visas offering Schengen access have an edge over those that don’t – but note that these visas do not necessarily give the right for holders to live (or work) in other countries across the EU, only the country issuing the visa.

Other considerations include level of investment required, convenience of location, pathway to citizenship and the number of days required to stay there per year.

But not all golden visas are equal. Here, with input from immigration advisers, we examine the schemes which are among the five most favoured and useful schemes for British people.

Best for a quicker path to citizenship
... access to flat-tax regimes
... zero income tax
... EU access at a lower price
... retirees looking for a low-tax haven
Best for... a quicker path to citizenship
Portugal

Expats flock to Portugal for the lifestyle and English-speaking community - Moment RF

Portugal’s golden visa remains a favourite. Last year, Portugal approved a record-breaking 4,987 golden visa applications from people of all nationalities, 72pc more than the previous year, according to the immigration agency AIMA. Many attribute this increase to the end of the Spanish golden visa, which ceased in April this year.

But there are strong lifestyle drivers, too. Patricia Casaburi, of Global Citizen Solutions, says: “Portugal is the top choice for many wanting to relocate in Europe. Lifestyle, and the huge influx of foreigners over the last few years, have made it increasingly easy to find a community to connect with. English is widely spoken.”

The growth of international schools in Portugal is another pull, and you only have to spend seven days a year there to retain your visa. Often it is Schengen access that is the real clincher – the Greek golden visa also offers this, but a key difference is that in Portugal you are allowed to work locally on this visa, unlike golden visa holders in Greece.

Schengen access gives the right to visa-free travel within the Schengen area, but not the right to reside or work in those other countries. This is especially sought after by Chinese and Indian applicants who make up a large proportion of golden visa holders.

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Casaburi adds that there is a straight-forward process to secure citizenship in Portugal, after only five years, although there are possible changes to the timescale in September.

To qualify for the golden visa, you must either donate €250,000 (£217,000) to an accredited Portuguese foundation or invest €500,000 in private equity or capital funds, which is the more popular option.

After five years you can apply for permanent residency or citizenship – and there’s a tax-efficient way to get your money back, says Casaburi. “Portuguese non-residents are generally exempt from paying taxes on dividends and capital gains from the venture capital fund, so those who maintain their tax residency in their home country pay no Portuguese taxes on fund distributions or capital gains.”

If you opt to become a Portuguese tax resident, you’ll pay 10pc tax deducted at source on distributions from golden visa-eligible investment funds, which is significantly lower than Portugal’s standard capital gains tax rates.

Biggest negative? The backlog of applications means waiting times of 18 to 24 months for this visa. However, the Portuguese government has promised to reduce this in 2025.

Best for... access to flat-tax regimes
Greece

Greece has had a surge in golden visa applications ahead of rule changes - Igor Tichonow

Greece’s golden visa has been increasing in popularity: last year there were 9,100 applications, according to the Ministry of Migration and Asylum, which is double the amount in 2023. However, this can in part be explained by a rush to beat the changes to the scheme at the end of 2024.

The raising of the property price threshold from €250,000 to €800,000 on popular islands such as Crete and in Athens has now put it beyond the means of many British homebuyers. The UK does not feature in the top 10 nationalities applying for it, which is headed by China, Russia and Turkey.

Interest from the US has grown, says Eleni Acquarone, of Elxis – a Home in Greece. “In six months we’ve already reached the total number of American citizen applications we had for 2024.”

She is seeing a broader spread of locations now, shifting across the Greek mainland where the €400,000 threshold applies – to the Ionian Coast and the Peloponnese, especially around Kalamata.

The Greek golden visa offers Schengen access and has no stay requirement per year. There are options to get the visa by spending only €250,000 (on either an historic property to restore or the conversion of a commercial building into a residential one). But much of Greece is less easily accessed from the UK than Portugal and the path to citizenship is seven years, not five.

While it can be used in tandem with Greece’s two flat-tax regimes (€100,000 lump sum per year, or 7pc income tax for retirees), it offers no access to the labour market – you can work for a foreign company remotely in Greece but you cannot get a job in Greece. You are also not allowed to rent out the property for short-term lets.

Biggest negative? The new €800,000 threshold has priced out lower and mid-market buyers.

Best for... zero income tax
United Arab Emirates

A high cost of living hasn’t put off thousands of British families from a life in Dubai - iStockphoto

Despite increases in the cost of living, especially housing costs, the UAE remains the hotspot for British people relocating to the Middle East for tax perks and lifestyle benefits.

Those moving are attracted by the UAE’s political stability, economic growth, pro-business environment and regulatory certainty as key drivers. Of course, the zero personal income tax on salaries, investments or rental income earned within the country is another. There is no capital gains tax, inheritance tax, wealth tax or annual tax on worldwide assets.

Entry points are relatively low, compared to other countries: a 10-year golden visa requires at least AED 2m (£405,000) of investment into a business or property purchase, while the five-year ‘silver visa’ for those over 55 requires the purchase of a property of AED1m (£202,000) or to invest half that sum in a pension account.

Real estate purchases for golden visas are usually required to be unmortgaged, but the UAE scheme was altered this year to make eligible those with a 20pc deposit. Some off-plan properties are eligible, if 50pc of the cost is paid off. A separate work visa is not required.

Biggest negative? No Schengen access, though there is the right to live in seven emirates.

Best for... EU access at a lower price
Latvia

Latvia’s low entry point and Schengen access appeals to British buyers wanting EU status - Moment RF

Latvia’s low entry point of €60,000 (£52,000), and the fact it offers Schengen access, have made this Baltic state’s golden visa scheme very popular. You can move around the EU with this golden visa, though it doesn’t give you the right to live and work there.

Russians dominated applications until they were banned in 2022, but after a drop in popularity the scheme recorded notable growth during 2024, according to relocation adviser Savory & Partners, which reports a shift in demand to Chinese and Turkish buyers.

Of the options available, the €50,000 investment into a Latvian fund (plus €10,000 donation to the state) dominated demand, with the real estate investment option (more than €250,000) way behind, showing its appeal as a mobility tool rather than for relocation. It does, however, allow visa holders to work in Latvia.

“Schengen access is the real driver, but the annual in-person renewal requirement is a burden compared to other golden visa programmes,” says Artur Saraiva at Global Citizen Solutions. The permit is for five years, but requires the holder to confirm their status every year by travelling to Latvia to do this. There is also a long 10-year path to citizenship.

For those moving there, the tax regime in Latvia is attractive; the top rate of income tax is 31pc.

Biggest negative? Northern European climate and the lack of lifestyle appeal.

Best for... retirees looking for a low-tax haven
Cyprus

Retirees in Cyprus pay a low 5pc flat tax on pensions - Kirillm/iStockphoto

You need to invest a relatively low €300,000 to qualify for Cyprus’s Residence by Investment visa. This can be into new-build real estate, shares in a Cypriot company employing at least five people, or units in a Cypriot Collective Investment Organisation. But it also requires proof of financial resources: €50,000 per annum, plus €15,000 for a spouse.

The scheme is popular with wealthy non-EU citizens from Russia, Israel, Lebanon and increasingly Asia, who are drawn to Cyprus’s stability, English-speaking environment and favourable tax regime, according to Global Citizen Solutions.

For UK and US nationals, the distance to travel is less convenient than Portugal. Cyprus is not yet part of the Schengen area – it has applied to join – so this is a reason why it is less popular than other countries offering Schengen access.

But the tax benefits do attract British people: the non-dom tax regime offers no tax on passive income such as dividends and interest for 17 years, while for retirees there’s a 5pc flat tax on pensions.

Although it is in a strategic position between Europe, the Middle East and Africa, small-island life is too restrictive for some, and it doesn’t offer the right to work.

Biggest negative? Lack of Schengen access

Gatwick baggage screeners to strike from next week - P.A. MEDIA

AUGUST 13, 2025

A trade union has announced a strike at Gatwick airport from next week which it claims will put all departing flights at risk of disruption.

Unite said baggage screeners employed by ICTS will walk out in a dispute over pay from August 22-26 – which includes a bank holiday weekend – and August 29 to September 2.

The union said the workers are among the lowest paid at the West Sussex airport, earning “just above the minimum wage”.

Meanwhile, ICTS made a profit before tax of £6.1 million in 2024, a 46.9% increase compared to the previous year, according to the union.

Unite general secretary Sharon Graham said: “ICTS has more than enough money to offer these workers a fair pay rise.

“Not doing so is just corporate greed.

“ICTS’ Gatwick workers will receive Unite’s complete backing for as long as it takes during their strikes for fair pay.”

Unite said “all flights out of Gatwick will face disruption”, and industrial action “will intensify if the dispute is not resolved”.

A Gatwick spokesperson said: ”We are working with our suppliers to avoid any impacts and we expect to operate a normal summer holiday flight schedule for our airlines and passengers on these dates.

“Of course, we hope ICTS and their union can reach a resolution before then.”

Air Canada flight attendants serve 72-hour strike notice - THE CANADIAN PRESS

AUGUST 13, 2025

The union representing Air Canada’s flight attendants gave the company a 72-hour strike notice after the two sides could not agree to terms on a new collective bargaining agreement.

Canadian Union of Public Employees (CUPE) confirmed to CTVNews.ca it served its first strike notice to both Air Canada and Air Canada Rouge early Wednesday morning, meaning flight attendants can walk off the job Saturday morning at 12:58 a.m. ET.

According to CUPE, Air Canada issued a lockout notice to the union at 1:30 a.m. ET.

Air Canada said on Tuesday afternoon it reached an “impasse” in negotiations with the union, which on Tuesday said it declined a proposal from the airline to enter a binding arbitration process.

The airline said in the event of a stoppage, it would notify customers whose flights are potentially cancelled and they will be eligible for a full refund, which could be obtained through its website or the Air Canada mobile app.

Earlier Tuesday, CUPE said in an update to members that the company has “decided they no longer want to negotiate.” The union attached a letter that it received from Air Canada, dated Monday, in which the airline proposed going the arbitration route to secure a new contract.

That would have suspended the union’s right to strike, as well as Air Canada’s right to lock out union members, the letter noted.

Last week, the flight attendants voted 99.7 per cent in favour of giving their union a strike mandate, which is effective for 60 days.

With files from The Canadian Press

‘Serious concerns’ as UK-based EU citizens wrongly blocked from re-entering Britain - THE TELEGRAPH

AUGUST 13, 2025

  • EU citizens awaiting pre-Brexit residency decisions have been wrongly denied re-entry to the UK after short trips overseas for holidays or business.
  • The Independent Monitoring Authority for Citizens’ Rights Agreements (IMA) has expressed serious concerns to the Home Office, stating these individuals should not be removed.
  • The IMA asserts that a valid 'certificate of application' (CoA) should grant citizens the right to exit and re-enter the UK while their residency application is pending.
  • The IMA has urged the Home Office to clarify the rules surrounding CoAs before the implementation of new electronic travel authorisations (ETAs).
  • The Home Office maintains that CoA holders are aware they may be asked for further evidence, though campaign group the3million believes a CoA should be sufficient proof of rights.

Nigerians favour Abu Dhabi, Dubai for capital protection – Report - PUNCH

AUGUST 15, 2025

By Oluwakemi Abimbola


Abu Dhabi and Dubai have been selected by wealthy Nigerians to protect their wealth against uncertainties, the latest Wealth Report 2025 has revealed.

According to the report by Multipolitan, titled ‘Wealth Report 2025: The Taxed Generation’, published by the international mobility platform, these two cities, alongside Singapore, are ranked as top choices for wealth management.

The Multipolitan’s report indicated that these cities are attractive for long-term wealth preservation due to their legal stability, predictable governance, and infrastructure resilience.

These factors are said to be crucial for Nigerians seeking to protect and grow their fortunes in a volatile global economy.

Commenting, the firm’s Executive Partner for Africa, Chee Okebalama, stated, “Wealth that sleeps in uncertainty isn’t wealth; it’s a risk. Cities like Singapore, Abu Dhabi, Doha, Wellington, and Copenhagen top our indices for their governance, stability, and readiness for the future. We help families gain residency in cities that reflect these values.”

 The study revealed further that Nigerian elites are shifting focus from chasing high investment returns to preserving capital against political, economic, and climate-related shocks.

Group Head of Market Development at Multipolitan, Nicholas Michael, stressed that geography now plays as much of a role in wealth strategy as portfolio composition.

“Where you place your wealth can matter just as much as how you grow it. The UAE and Singapore aren’t just attracting capital; they’re protecting it through fiscal prudence and stable governance,” he said.

Additionally, in the report are five other Gulf cities – Manama, Doha, Kuwait City, Riyadh, and Muscat – recognised among the top 20.

Air Canada to Resume Flights Sunday After Government Ends Strike - BLOOMBERG

AUGUST 17, 2025

 Air Canada will begin resuming operations on Sunday after the government moved to end a strike by more than 10,000 flight attendants that had led to hundreds of cancellations.

Flights will resume Sunday evening with a gradual ramp-up over the coming days, the Montreal-based airline said in a statement. Still, it expects to take several days before operations return to normal.

The Canada Industrial Relations Board has directed Air Canada to resume airline operations and for all Air Canada and Air Canada Rouge flight attendants to return to work by 2:00 p.m. in Montreal, according to the statement early Sunday. The move came after Jobs Minister Patty Hajdu directed the independent CIRB to order a resumption of operations and to impose binding arbitration to resolve a standoff over contract negotiations.

Some 10,500 flight attendants walked off the job early Saturday after pay talks between the union and the country’s biggest airline fell through. That led Air Canada to ground hundreds of flights and lock out flight attendants, disrupting some 130,000 passengers a day during the summer holiday season.

America the preferred destination as wealthy consider quitting Britain - THE TELEGRAPH

AUGUST 20, 2025

A wealth tax by Rachel Reeves would trigger a wave of millionaires living in Britain to flee to the US as they seek to escape punishing levies, new research shows.

More than 1,000 UK millionaires polled by Arton Capital said the US was their most preferred destination. Wealthy Britons will prioritise English-speaking countries and nations with favourable tax rates if the Government introduces a wealth tax.call to action icon

Growing interest in the US as a new home for British millionaires comes after Donald Trump cut taxes for America’s wealthiest residents, and doubled the estate and gift tax exemption from $5.5m (£4m) to $11.2m per person, in a boost to the country’s high-net-worth families.

More than half of millionaires (53pc) polled were considering moving abroad if a wealth tax was introduced, while 60pc believed they could have a better quality of life outside the UK.

Canada, Australia and the UAE were also found to be popular locations for relocation according to the research from Arton, which advises wealthy individuals on global citizenship programmes.

The findings come amid concerns that a new levy on assets over £10m would drive people overseas and trigger a fresh exodus of the rich from Britain.

Several Left-wing Labour figures, including Lord Kinnock, the former party leader, have repeatedly called for the introduction of a wealth tax.call to action icon

Last month Jonathan Reynolds, the Business Secretary, dismissed the idea as “daft” and urged backbenchers to “be serious”.

Mounting pressure on the Chancellor to introduce a new levy on Britain’s wealthiest comes as Ms Reeves faces a black hole of as much as £50bn in the public finances.

Armand Arton, the chief executive of Arton Capital, said fears from Briton’s wealthiest about a potential wealth tax showed the UK was at a “tipping point”.

He said: “The uncertainty around the Government’s proposed wealth tax mirrors the ongoing economic uncertainty seen around the world – from Trump’s tariffs to conflict in the Middle East.”

The research also revealed that 82pc of millionaires resident in the UK would consider investing in a golden visa or citizenship by investment programme, which allows individuals to gain residency or citizenship through financial investment. Arton offers a consultancy service to millionaires seeking out such programmes.call to action icon

Despite many millionaires weighing up a potential move abroad, 66pc of those surveyed said they still believed the UK was an attractive place to invest compared to other nations.

Concerns about a new wealth tax come as the Government faces scrutiny over its approach to Britain’s high-net-worth individuals and entrepreneurs.

Many wealthy residents are already moving abroad after Ms Reeves scrapped non-dom tax status and introduced inheritance tax on overseas trusts earlier this year.

Since the rule change there have been a series of high-profile departures, including Richard Gnodde, Goldman Sachs’s vice chairman, who said he was relocating to Milan to avoid being hit by the scrapping of the non-dom status.

The Office for Budget Responsibility said in January the abolition of the tax status would result in 25pc of non-doms with trusts leaving the UK, while 10pc of those without trusts would move overseas.

Mr Arton said: “There are many repercussions of the introduction of a levy, but one thing is clear: the longer that unpredictability persists, the greater the risk of losing capital, talent and long-term investment to countries that offer greater security for individuals, families and their futures.”

Ethiopian Airlines expands Abuja operations with extra flights - P UNCH

AUGUST 21, 2025

In a bid to support the growing trend of Abuja becoming a major destination for international conferences and meetings, Ethiopian Airlines, Africa’s largest airline, is set to add extra flights to the Nigerian capital from October 28, 2025.

The airline will introduce three additional weekly flights to its daily flights already operating out of Abuja, offering passengers more options and convenience, according to a statement on Wednesday.

The extra flights will depart Abuja at 10 pm and arrive in Addis Ababa at 5 am, connecting to various African and Asian destinations, including Dubai, Addis Ababa, and others. According to Mrs Firiehiwot Mekonnen, Area Manager of Ethiopian Airlines in Nigeria, the additional flights will not only provide more options but also come with extra benefits.

“Passengers will enjoy more baggage allowance on certain routes, including Mumbai, Delhi, Hyderabad, Madras, and Dubai,” Mekonnen said.

 “You can also get double miles if you fly with us,” she added. The airline’s loyalty program will reward its loyal passengers with extra benefits.

The daily midday flight will remain unchanged, while the additional evening flights will offer passengers more flexibility and options. The extra flights will also enable passengers to connect to many African and Asian destinations with reduced total hours of flight time.

Mekonnen emphasised that the additional flights are designed to improve service delivery and reduce costs for travelers. “Most of our passengers will now arrive at their destinations faster,” she said. Ethiopian Airlines has been serving the Nigerian market since 1960, operating with the newest aircraft in the world, including the A350-1000 and B787 Dreamliner.

The airline connects Abuja, Lagos, Enugu, and Kano to over 150 global destinations, solidifying its position as a major player in the aviation industry. The Nigerian government’s recent reopening of the Abuja International Conference Centre is expected to boost the country’s Meetings, Incentives, Conferences, and Events (MICE) sector, and Ethiopian Airlines’ additional flights will support this growing trend.

Why it no longer pays to earn £100k - THE TELEGRAPH

AUGUST 21, 2025

Story by Charlotte Gifford

Tax Trap

Have you turned down a pay rise to protect yourself from higher tax? Let us know: [email protected].


Earning over £100,000 used to be a hallmark of success. Not so much any more.

These days, workers on six-figure salaries can be left thousands of pounds worse off thanks to our warped tax system.

Those earning between £100,000 and £125,140 face the highest effective tax rates in the country. This is because they lose their £12,570 personal allowance at a rate of £1 for every £2 earned, until it disappears entirely. Although on paper they pay 40pc tax, their effective tax rate is actually 60pc, meaning they only keep £400 of every £1,000.

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On top of this, parents can be better off turning down a pay rise because they lose valuable childcare subsidies once they step over the £100,000 mark.

This year, almost 725,000 workers will fall into the 60pc tax trap, according to new figures from HM Revenue and Customs (HMRC), up from around 300,000 in 2018.

Sean McCann, of insurer NFU Mutual, who obtained the data through a freedom of information request, said: “Earning £100,000 used to be aspirational, but now it’s a sting in the tail.”

He continued: “When you add in National Insurance of 2pc, this means that only £38 of every £100 earned between these amounts ends up in the employee’s pocket.”

‘The allure of a higher salary diminishes’

The number of workers caught in the 60pc tax bracket is expected to soar to 850,000 by 2028-29, as wages rise while thresholds remain frozen – a phenomenon called fiscal drag.

In total, HMRC forecasts that 2.25 million workers will lose some or all of their personal allowance by 2028-29 because they exceed the £100,000 threshold.

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John Clamp, of asset manager Bowmore Financial Planning, said “a huge cohort” of taxpayers were now taking home far less than expected.

“The tax burden on high earnings could have a broader and worrying impact on parts of the economy, as it is encouraging many taxpayers to reevaluate their work-life balance to reduce their tax bills.

“Leaving the tax trap unresolved means people will not see the reward of going the extra mile to earn a higher income. If HMRC takes 60p in every pound you earn above £100,000, the allure of working hard for a higher salary diminishes.”

The disappearance of childcare benefits makes the £100,000 cliff-edge even steeper.

Once a parent earns over £100,000, they no longer qualify for 30 hours a week of free childcare or tax-free childcare, worth up to £2,000 a year per child.

According to calculations by stockbroker AJ Bell, a £2,000 pay rise could cost a worker earning £99,000 almost £28,000 in tax and childcare subsidies.

Charlene Young, of investment platform AJ Bell, said: “What’s astonishing is how much their salary would need to increase to get to the same post-tax income and value of childcare support as before.

“The breadwinner’s salary would need to increase to around £156,000 before the family got back to the same total disposable income as when the breadwinner was earning £99,000.”

This distorted system means many high earners will do everything in their power to keep their salary below the six-figure mark.

Nimesh Shah, of accountancy firm Blick Rothenberg, said the main actions workers take to bring their income below the £100,000 threshold include saving more into their pension, donating to charity or buying additional holiday.

He added: “I’ve seen workers delaying bonuses so that income in the current tax year remains below the threshold, and even rejecting a salary increase because of the impact of the childcare threshold.”

Mr Clamp said some will go part-time or retire early to avoid the punitive tax rates and retain their childcare benefits.

“People who reach this kind of income are typically high performers – it’s not good for UK plc if they are cutting down on their work,” he said.

But not everyone can afford to take these actions. Cash-flow pressures may prevent a higher earner from increasing pension contributions or otherwise reducing their salary.

Average mortgage rates recently dropped below 5pc for the first time since the Liz Truss mini-budget but millions of borrowers remain stuck on higher repayments.

Inflation has risen to its highest level since January 2024, according to data from the Office for National Statistics, as households continue to face a cost of living squeeze.

The 60pc tax trap has existed since 2010 when Gordon Brown’s chancellor, Alistair Darling, first introduced the tapering of the personal allowance to raise revenue after the financial crisis. But since then, the £100,000 threshold has not moved. Had it risen with inflation, the threshold would now stand at £154,800, NFU Mutual said.

Freezing income tax thresholds is a way of raising revenue without changing rates – and so is often referred to as ‘taxation by stealth’. Rishi Sunak first froze thresholds as chancellor in 2022, promising the bands would rise with inflation in 2025-26. However, the next chancellor, Jeremy Hunt, extended the freeze until 2027-28.

In last year’s autumn budget, Rachel Reeves vowed to uprate the bands with inflation in April 2028. But with a ballooning £50bn hole to fill, there are fears she could break this promise in the next financial statement in order to balance the books.

A Treasury spokesman said: “This government inherited the previous government’s policy of frozen tax thresholds. At the Budget and the Spring Statement, the Chancellor announced that we would not extend that freeze.

“We are also protecting payslips for working people by keeping our promise to not raise the basic, higher or additional rates of Income Tax, employee National Insurance or VAT. That’s the Plan for Change – protecting people’s incomes and putting money into people’s pockets.”


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