Reinstate the personal tax allowance for people earning over £100,000 pa.

Above the £10,600 tax-free personal allowance there are three bands of income tax people pay on earnings: 20pc (basic rate - from £10,600), 40pc (higher rate - from £42,385) and 45pc (additional rate - from £150,000).

But people earning over £100,000 gradually have their personal allowance removed at a rate of £1 for every £2 earned above the threshold, up to £121,200. This means a "fourth" band of "marginal tax" is created in which they pay 60pc on income in between these levels, plus 2pc for national insurance, a total rate of 62pc.
Workers pocket just 38pc of the income they earn between these levels. It means, ludicrously, that they pay a higher marginal tax rate than people who earn far more.