Restore leader Rupert Lowe has unveiled proposals to abolish the HMRC tax taper that penalises earners above £100,000, a move he argues would address an unfair effective tax rate and support younger generations. The plan forms part of his party's manifesto ahead of the next general election, positioning Restore as a rival to Reform on the right of British politics.
How the tax taper works
Under current HMRC rules, the tax-free personal allowance of £12,570 is reduced by £1 for every £2 earned above £100,000. This withdrawal creates an effective marginal income tax rate of 60% on earnings between £100,000 and £125,140. Once income exceeds £125,140, the personal allowance is completely eliminated, leaving no tax-free threshold for higher earners.
Mr Lowe argues that this taper is effectively irresponsible, as it disproportionately affects higher earners and discourages productivity. By scrapping it, Restore aims to simplify the tax system and reduce the punitive marginal rate that many professionals face.
Triple lock defended as generational fairness
In addition to tax reform, Mr Lowe defended plans to scrap the triple lock, which guarantees that the Department for Work and Pensions (DWP) state pension rises each April. He described the move as a matter of fairness between generations, arguing that wealth is currently concentrated among older cohorts.
“It is effectively irresponsible. I think the majority of the wealth is locked up now in the older generations, and as we see it at Restore Britain, it's the younger generations who need to see the benefit of some form of wealth transfer,” Mr Lowe said.
The triple lock ensures that pensions increase by the highest of inflation, average earnings growth, or 2.5%. Scrapping it would likely lead to lower annual increases, potentially saving the government billions but reducing retirement income for pensioners.
Olive branch to Nigel Farage
The manifesto comes in the same week Mr Lowe extended an olive branch to Nigel Farage, leader of Reform UK. In a video posted on X, Mr Lowe called for cooperation between the two right-wing parties, saying they should put “personalities and our past disagreements aside for the good of the country”.
Mr Lowe told the Reform UK leader that if he was “prepared to work together around serious policies, serious reform and serious government, then so are we”. He expressed belief that there could be sufficient common ground for the two movements to cooperate collectively, aiming to “destroy the looming leftwing alliance that will finish off what hope remains for this country”.
“In my view, failing to even try because of our own personal difficulties is simply not an option. Now is the time to put our differences aside and cooperate for the good of the country that we all love,” he added.
Impact on taxpayers and political landscape
If implemented, scrapping the taper would benefit an estimated 1.2 million taxpayers who earn above £100,000, according to HMRC data. However, it would also reduce government revenue, potentially requiring spending cuts or tax increases elsewhere.
The proposal has sparked debate among economists, with some arguing that the taper is a necessary revenue-raising measure, while others support its abolition to reduce complexity and incentivise work.
Restore's move to court Reform suggests a strategic alignment on the right, which could reshape the political landscape ahead of the next election. Whether the two parties can overcome their differences remains to be seen, but Mr Lowe's overture signals a willingness to unite against the left.
