Let’s Break This Down Together…
Working harder. Paying more tax. Getting less back.
That’s the message coming through loud and clear after the UK Budget, and millions of people are furious.
From frozen tax thresholds and stealth tax rises, to savers, landlords and business owners being quietly squeezed, this Budget has sparked one of the biggest public backlashes in recent memory.
Welcome back to The Tax Queen Podcast, where we cut through the noise and talk honestly about money, tax, and the policies that actually affect your life.
This week’s Budget Special covers:
- Why the government’s “no tax rises” promise doesn’t quite hold up
- How frozen thresholds are dragging millions into higher tax bands
- Why savers, investors and business owners are being hit from every angle
- And why a record number of Brits are packing up and leaving
Grab a brew, let’s unpack it.
The Stealth Tax Nobody Asked For
The government promised not to raise income tax, National Insurance or VAT.
Technically, they didn’t.
In reality, they froze personal allowances and tax thresholds, quietly increasing tax for millions.
If allowances had risen with inflation, the personal allowance would now be around £15,500. Instead, ordinary pay rises are pushing people into higher tax brackets, without them being any better off.
As we said on the podcast: “It’s a tax rise without calling it one, and people are furious.”
Back in 2010, only 7% of people paid higher-rate tax.
That figure has doubled to 14% and is heading towards 20%.
At that point, higher-rate tax stops being about “high earners” and starts hitting everyday workers.
Working More, Getting Less
Why push for a promotion?
Why do overtime?
Why work harder?
When a large chunk of every extra pound goes straight to the government, the incentive disappears.
This isn’t just bad for individuals, it hurts productivity, ambition and growth. People no longer feel the government is on their side. And despite paying more, public services aren’t improving. The NHS is still stretched. Waiting lists are growing. Schools are struggling.
People are paying more, and getting less.
A Record Tax Burden, And People Are Leaving
The UK tax burden is now set to reach its highest level since World War II.
At the same time, a record number of people are leaving the country.
- 257,000 British nationals left the UK last year
- From 2021 to 2024, 344,000 more people left than officially reported
- The UK is forecast to lose 16,500 millionaires in 2025 alone, more than any other country
Doctors. Founders. Skilled workers. Young professionals.
When ambition is punished and wealth creation is attacked, people don’t protest, they relocate.
Welfare Spending and Broken Incentives
Around 25% of government spending now goes on welfare, yet the system feels broken for everyone.
Working taxpayers are seeing:
- Frozen tax bands
- Higher effective tax rates
- Rising living costs
While welfare payments rise.
The issue isn’t helping people who genuinely need support, it’s that the system increasingly rewards not working and penalises working.
As discussed on the podcast:
Over 50% of UK households now take more out than they put in.
That’s not sustainable, and people know it.
Savers, Investors and Business Owners Hit Again
This Budget didn’t stop at workers.
From April 2026:
- Dividend tax rises by 2%
- Savings tax rises by 2%
- Cash ISA limits cut from £20,000 to £12,000
- Salary sacrifice NI relief capped at £2,000
Anyone trying to save, invest or plan for the future is being squeezed.
The irony? These are the very people who fund pensions, create jobs and grow the economy.
The advice hasn’t changed:
- Pensions are still tax-efficient
- ISAs are still worth maxing out
- Saving is still better than not saving
But the margin for getting ahead is shrinking fast.
The £22 Billion Black Hole That Wasn’t
One of the biggest controversies surrounds the so-called £22bn black hole.
Reports suggest the Office for Budget Responsibility told the Chancellor months before the Budget that:
- There was no £22bn deficit
- There was actually a £4bn surplus
Yet the crisis narrative remained, helping justify a £30bn tax hike. Create an emergency, and people accept tax rises. Admit a surplus, and people ask questions. That’s why trust has collapsed.
EV Drivers and Yet Another Broken Promise
Electric vehicle drivers were encouraged to switch with promises of incentives.
Now they face:
- Congestion charges from January 2026
- Potential pay-per-mile taxes
- Falling resale values
After repeated denials, reports suggest these policies were planned for months.
For many, it’s another example of being told one thing, and delivered another.
What It All Means for You
This Budget has struck a nerve because it touches everything:
- Work
- Savings
- Family life
- Future planning
People aren’t angry because they hate tax.
They’re angry because the system feels dishonest, unbalanced and punishing.
At Tax Queen, we believe:
- Work should be rewarded
- Saving shouldn’t be penalised
- And honesty from government isn’t optional
The rules are changing fast, staying informed is no longer optional.
