Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Progressive tax
A tax under which people with more income pay a larger share of it in tax.
Key term
What it means
A tax is progressive when the average share paid rises as the income being compared rises. For example, Income Tax can be progressive when tax-free income and higher rates mean higher earners pay a larger percentage of their total income. Paying more pounds in tax does not by itself make a tax progressive: the percentage of income must also rise. A tax can work differently for different groups, so check which tax and incomes a claim refers to.
Example
In a made-up tax system, someone earning £20,000 pays £1,000 tax (5% of income), while someone earning £40,000 pays £6,000 (15%). This example is progressive because the higher earner pays a larger share, not just a larger amount.
Why it matters
It helps make discussions about who carries the cost of a tax more precise.
Also known as
progressive taxation
Related terms
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Automatic stabilisers
Parts of the tax and benefit system that respond to a weaker or stronger economy without a new policy decision.
Read more -
Effective tax rate
The total tax someone pays, shown as a percentage of the income or other amount being measured.
Read more -
Fiscal policy
Government decisions about taxes, spending and borrowing.
Read more -
Marginal tax rate
The tax rate that applies to the next pound of income you earn.
Read more -
Personal allowance
The amount of income most people can receive in a tax year before paying Income Tax on it.
Read more -
Regressive tax
A tax that takes a larger share of income from someone on a lower income than from someone on a higher one.
Read more -
Value added tax (VAT)
A UK tax added to the price of many goods and services people buy.
Read more
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How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
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Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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