THE UK POLICY LAB

A different economy.
Your decisions.

Tax wealth. Cut the cost of work. Rethink the big things.
Move the levers and explore what might happen.

EXPERIMENTAL · MODEL 1.5

A small model for big questions.
Illustrative scenarios, not forecasts.

See how it works
Official data checked 14 September 2026Latest available releases, with dates and assumptions recorded. Inspect the data ↗
START WITH A SCENARIO

Start with no policy changes. Move a slider to explore the difference.

YOUR MIX GDP 0.0% · household breakdownResults ↓
01 / THE LEVERS

Build your policy mix

0%
0%3%

On net wealth above £10m per person. The alternative below is a minimum-tax top-up. ↗

0%
0%2%

Annual levy on land alone, excluding buildings. Added to existing property taxes. ↗

0%
0%Full reform

Close the gap with your chosen income-tax rates. 100% = full alignment. ↗

0%
0%Full reform

A stylised package narrowing business, agricultural and trust reliefs. Main rate unchanged. ↗

£0.0bn

Choose a rate rise or full reform. Annual revenue change in the selected year. Source & assumptions ↗

AND THE BIG DECISIONS
Who receives the stimulus?

All assumed British citizens, including those abroad. The count is a scenario assumption, not the UK resident population. 92% of payments are assumed to reach domestic households.

Default: 65m citizens × £1,000 = £65bn, paid in year 1.

Reference rates checked for 2026/27. Tax sensitivities use HMRC’s June 2025 publication; its 2026 update was deferred. Scope & limitations ↗

See your results ↓
02 / THE POSSIBILITIES

Your policy, explained

Changes versus unchanged reference policy · 0 policies changed

01 / YOUR HOUSEHOLD

Who gains, who pays?

See take-home pay first, then explore income, living costs and asset taxes separately.

Illustrative salaries after income tax and employee NI, for England, Wales and Northern Ireland. Tax brackets apply to individuals, not households.

What is included in these examples?

England, Wales and Northern Ireland, 2026/27 rules. Gross salaries and thresholds stay fixed. Only basic/higher income tax and employee NI sliders change these pay packets. Additional-rate tax and upper-band NI stay fixed. The allowance taper above £100,000 is included.

No pension deductions, student repayments, benefits, dividends, capital gains or wealth holdings are assumed. Employer NI, corporation tax, VAT, stimulus and economic effects appear in the whole-policy household view instead. These examples are not added to the national model.

Official rates and thresholds ↗

All household figures are annual changes unless a before/after salary is shown.

What happens to the money raised?

Adjust income tax and NI ↗
02 / THE ECONOMY

Growth and jobs

Scenario effects on output and employment. These come from the model’s assumptions, including its assumed wealth-tax drag.

GDP LEVEL 0.0%£0.0bn a year
Scenario range: 0.0% to 0.0%
UNEMPLOYMENT RATE CHANGE0.00pp0 change in unemployed peopleONS reference: 4.9% · Apr–Jun 2026
Cyclical response; fixed labour force

A decade of difference

GDP level relative to the reference economy

% CHANGE
GDP scenario over ten yearsNo policy changes selected: GDP is unchanged.
Central assumption Scenario envelope Reference

The shaded range varies our assumptions. It is not a statistical confidence interval.

Read the chart as a table
GDP-level differences from reference policy
YearLowCentralHigh
03 / PUBLIC FINANCES

Tax, spending and borrowing

DIRECT TAX RECEIPTS£0.0bnannual change, before GDP feedback
ADDITIONAL BORROWING£0.0bnannual change, including interest
GOVERNMENT INTEREST COST£0.0bnannual change from financing & rates
Scenario range: £0.0bn to £0.0bn

Follow the money

Change in the government’s annual budget · £bn

YEAR 5
Your budget starts here. Add a policy to see its cost or revenue.
Additional annual borrowing£0.0bn

Cumulative additional borrowing through year 5: £0.0bn.

Where government spending goes

Annual spending in your selected year · £bn

TREASURY 2025/26 ↗
Government spending compositionReference: HM Treasury 2025/26 Total Managed Expenditure, with modelled policy changes.£1,360bnANNUAL SPENDING
Spending compared with the reference budget, in £ billions
CategoryReferenceYour mixChange

Extra tax revenue reduces borrowing unless you add investment. Repayments forgone reduce government income; they are not a spending slice. Student asset write-offs are shown separately. The pie changes with interest, unemployment benefits, investment, EU contributions and year-1 cheques.

04 / THE MARKETS

Bonds and interest rates

Bonds & interest rates

Modelled changes from the reference rate path

MODEL ASSUMPTIONS ↗
10-year gilt yield0bpRange: 0 to 0bp
Bank Rate response0bpRange: 0 to 0bp
Illustrative gilt price0.0%4% coupon · 10 years remaining

Latest official Bank Rate: 3.75% (30 July 2026). The gilt illustration uses an assumed 4% reference yield, not a current quote.

Change the market assumptions

These controls are sensitivities, not coefficients estimated by the Bank or OBR. 100 basis points (bp) = 1 percentage point.

Interest costs feed the budget. Feedback from interest rates to GDP, mortgages, saving and household income is not modelled. Global yields and market stress can overwhelm these relationships.

05 / SHOW THE WORKINGS

Why the results changed

Why did things change?

Your scenario, in plain English · central assumptions

    Every selected policy, explained

    03 / UNDER THE BONNET

    The assumptions are part of the experiment.

    RESEARCH REVIEWED 14 SEP 2026

    Official data anchors the scale. Research informs the mechanisms. GDP, unemployment, market responses and distribution are transparent scenario illustrations—not predictions endorsed by Stevenson, Zucman, HMRC or the OBR.

    What do the results mean?

    All results are changes from a reference policy with monetary scales held fixed. GDP uses £3,097.533bn (the latest four ONS quarters); household figures use 29.0m households. These releases cover different periods; their values are held fixed without an inflation rebasing step. Year 1 means the first year of your package, not a calendar forecast. The chart shows a GDP-level difference, not annual growth.

    Taxes and investment continue annually. Surpluses reduce borrowing. Unfunded cuts or spending increase it. We include a 35% tax feedback from GDP and a separate rate-sensitive interest calculation. The 4% reference financing rate is a modelling assumption, not a current market quote.

    How uncertain is the model?

    We run cautious, central and optimistic assumptions and show the smallest and largest result for each metric. Outcomes outside these bounds are possible. The endpoints are neither probabilities nor confidence limits.

    Wealth-tax revenue varies around the campaign anchor by 0.65× / 1× / 1.1×. CGT uses two separate policy costings. The higher-rate rise uses HMRC’s three annual estimates, holding the last constant afterwards. Full reform uses CenTax’s £11.3bn annual estimate from year 1. These timing assumptions are ours; neither is a published ten-year forecast. The scenario envelope does not measure CGT costing uncertainty. Supply and demand responses vary separately. The model omits a full inflation forecast, monetary feedback to demand, population changes, land-price adjustment and detailed policy interactions.

    How are GDP effects calculated?

    Initial demand multipliers are 0.3 for income tax/NI, 0.35 for VAT/fuel, 0.1 for other taxes, 1 for investment, 0.4 for repayments avoided and 0.5 for domestic stimulus. Responses vary by 0.6× / 1× / 1.4× and fade to zero by year 5.

    At year 10 the central supply assumptions, in percentage points of GDP, are: +0.04 per point cut to basic income tax or employee NI; +0.015 higher-rate; +0.045 employer NI; +0.035 corporation tax; +0.1 per point of land tax; +0.025 per £1bn annual investment. Wealth-tax drag is −0.08 per rate point (40% of that for the billionaire floor). These are toy coefficients, not sourced causal estimates.

    EU membership, loans and the cheque

    EU entry is assumed in year 3. By year 10, GDP gains range from 0% to 4.2% (central 2%), with £10–18bn annual net contributions. Rejoining does not automatically reverse the estimated costs of Brexit.

    Student forgiveness cancels existing UK income-contingent loans. SLC reports £324.8bn face value; annual net repayments sum to £6.0251bn. Using those receipts as repayments forgone is a proxy. The £200bn recoverable asset loss and 6% annual repayment decline are assumptions. The asset loss is shown separately from cash borrowing. The £1,000 cheque is paid only in year 1 to all assumed citizens, including those overseas; 92% is allocated to domestic households.

    How is the tax burden distributed?

    The household view divides households into equal income fifths. We assign each tax and transfer an explicit set of shares, rather than pretending to use household microdata. Wealth and income ranks are not the same.

    Half of the GDP change flows into household income. CGT household effects are not estimated. Other direct tax effects reach households except corporation tax (50%) and employer NI (26% in year 1, rising to 80% in year 10). Income-side effects, living costs, asset taxes and economic assumptions are shown separately. Public services, asset-price changes and debt balances are not counted as household income. Exact weights and equations are included in the downloadable model notes.

    Reference rates and policy interactions

    The 2026/27 main rates are basic/higher income tax 20%/40%, employee/employer NI 8%/15%, corporation tax 25%/19%, VAT 20%, CGT 18%/24% and dividends 10.75%/35.75%. These are the rates represented by the toy, not a full tax system. Devolved bands, thresholds, relief details and future scheduled changes are not separately modelled. HMRC revenue sensitivities still reflect the older June 2025 publication.

    Dividend alignment responds to your income-tax settings. CGT choices have fixed rates and revenue anchors; changing income-tax sliders does not switch them off or recost them. Combining these policies adds their standalone costings; interactions are not modelled. The billionaire floor credits an assumed share of dividends and land tax, and replaces the annual wealth levy. Land tax is additional to existing property taxes. Large packages exceed the reliable scope of simple HMRC ready-reckoner arithmetic.

    Unemployment and the spending pie

    Unemployment moves by −0.3 percentage points per 1% cyclical demand gap in the central case (range −0.2 to −0.4). We hold the ONS labour force of 36.241m fixed and assume £8,000 benefits per additional unemployed person. The response fades by year 5 as demand normalises. Long-run productivity gains alone do not create a permanent fall in unemployment.

    The £1,360.122bn spending reference is Treasury’s first 2025/26 outturn. Every baseline slice comes from Table 5.2. Debt interest & transactions includes Bank and pension flows; Other includes accounting adjustments. This is Total Managed Expenditure, not purely cash spending. Only explicit spending policies, unemployment benefits and interest change the pie.

    Gilts, Bank Rate and interest costs

    Central Bank Rate change = your reaction coefficient × the demand gap, plus 25bp per percentage point of a first-year VAT inflation impulse (assumed 0.3 points per VAT-rate point). Supply-led growth does not automatically trigger rate increases.

    The ten-year gilt change is average expected Bank Rate change plus a premium on projected extra debt/GDP plus your market shock. Existing gilt coupons stay fixed; 1/14 of a £2tn stock refinances each year. £500bn is assumed exposed to Bank Rate. New borrowing uses a 4% reference yield plus the gilt change. These inputs simplify the debt book and exclude inflation-linked debt effects.

    Download the full equations & assumptions (.md) ↓
    04 / THE DATA

    What we know. What we assume.

    CHECKED 14 September 2026

    Each official input has its own observation period and release date. This is a reviewed snapshot, not a live feed. Future releases need a new review; a new check date must never hide an old observation.

    HMRC update delayed. The latest published tax ready reckoner is June 2025. HMRC deferred the July 2026 update while reviewing assumptions. We retain those costings, show their age, and do not present them as freshly estimated under 2026 policy. Read HMRC’s release notice ↗

    Official rules / illustrative salaries

    Salary-example thresholds

    £12,570 allowance · £50,270 NI upper limit
    Covers
    Tax year 2026/27 · England, Wales, Northern Ireland
    Published / updated
    Official current rates; checked 14 September 2026

    Basic taxable band £37,700; allowance falls £1 per £2 above £100,000; additional rate 45% above £125,140. Employee NI uses £12,570/£50,270 and 8%/2% (2026/27 employer guidance linked below). Salaries are examples, not band averages. No pensions, benefits, loans, other income or Scottish bands.

    HMRC · Income Tax rates ↗
    Derived from official data

    Annual GDP scale

    £3,097.533bn
    Covers
    2025 Q3–2026 Q2
    Published / updated
    13 August 2026

    Sum of four seasonally adjusted current-price quarters (£m): 762,832 + 767,478 + 780,594 + 786,629. Held fixed in the toy; not a GDP forecast.

    ONS · YBHA ↗
    Official estimate

    UK households

    29.0m
    Covers
    2025
    Published / updated
    17 April 2026

    Published rounded household count; denominator for mean cash effects.

    ONS ↗
    Official survey estimates

    Labour force / unemployment

    36.241m / 4.9%
    Covers
    April–June 2026
    Published / updated
    18 August 2026

    Labour force = 34.469m employed + 1.772m unemployed, age 16+, seasonally adjusted. The survey has quality limitations. Next scheduled release: 15 September 2026. Only the denominator feeds the model; 4.9% is context.

    ONS · Labour Force Survey ↗
    Official first outturn

    Government spending

    £1,360.122bn
    Covers
    Financial year 2025/26
    Published / updated
    16 July 2026; revised 29 July

    Total Managed Expenditure. Pie categories use Table 5.2, column G, divided by 1,000. Debt transactions include Bank of England and pension-scheme flows. Other includes accounting adjustments and the residual functions; this is wider than a cash services budget.

    HM Treasury · Table 5.2 ↗
    Official preliminary estimate

    UK land value

    £6.9tn
    Covers
    2025
    Published / updated
    10 June 2026

    Rounded whole-economy land (non-produced assets). Taxable coverage of 90% and collection of 90% are separate assumptions, not ONS estimates.

    ONS · preliminary balance sheet ↗
    Official rounded total

    UK student-loan face value

    £324.8bn
    Covers
    31 March 2026
    Published / updated
    18 June 2026

    UK income-contingent higher-education loans plus England further-education loans. Includes relevant EU borrowers. Face value is not recoverable asset value or an immediate cash cancellation cost.

    Student Loans Company ↗
    Sum of official rounded figures

    UK annual student repayments

    £6.0251bn
    Covers
    Financial year 2025/26
    Published / updated
    18 June 2026; corrected tables 2 July

    Net repayments posted to accounts (£m): England HE 5,339.3, England FE 46.7, Wales 242.6, Northern Ireland 186.9, Scotland 209.6. Posting dates differ from earnings/collection dates. Used as a starting proxy for repayments forgone; future runoff is assumed.

    SLC · national Table 1 / 1A / 1B ↗
    Current main rates

    Income tax / National Insurance

    20% / 40% · 8% / 15%
    Covers
    Tax year 2026/27
    Published / updated
    2026/27 official guidance

    Basic/higher income tax and main employee/employer Class 1 NI. Scottish income bands, other NI bands, allowances and thresholds are outside this simplified control set.

    HMRC ↗
    Current ordinary / upper rates

    Dividend tax

    10.75% / 35.75%
    Covers
    From 6 April 2026
    Published / updated
    2026/27 rates table

    The two rates rose by 2 points in April 2026. The toy now closes the smaller remaining gap to income tax. The additional dividend rate is outside this control.

    HMRC ↗
    Current main rates

    Capital gains tax

    18% / 24%
    Covers
    Current main rates
    Published / updated
    Current official rates guidance

    Special relief rates and carried interest are not represented by these two main rates.

    HMRC ↗
    Current main / small-profits rates

    Corporation tax

    25% / 19%
    Covers
    Financial year 2026
    Published / updated
    1 April 2026 rates update

    Both rates move by the same number of points in this toy. Marginal relief is not separately modelled.

    HMRC ↗
    Current rate

    Standard VAT

    20%
    Covers
    Current standard rate
    Published / updated
    Current official rates guidance

    Reduced and zero rates are unchanged.

    HMRC ↗
    Amended current policy

    Petrol / diesel fuel duty

    52.95p/litre
    Covers
    Cut extended to 31 December 2026
    Published / updated
    22 May 2026 amended notice

    Supersedes the earlier September rise announcement. The slider uses proportional changes and an older HMRC revenue coefficient. The toy freezes the reference; it does not project scheduled future duty changes.

    HMRC ↗
    Official policy rate · context only

    Bank Rate

    3.75%
    Covers
    Latest decision: 30 July 2026
    Published / updated
    30 July 2026

    Shown for context. Modelled rate changes are relative to a counterfactual path; adding them to today’s rate would not be an official forecast. The example bond still uses an explicitly assumed 4% yield.

    Bank of England ↗
    Older latest available modelling

    Tax revenue sensitivities

    £0.24–11.15bn per unit
    Covers
    2026/27 column of June 2025 model
    Published / updated
    24 June 2025

    Per point: basic 6.9, higher 1.6, employee NI 5.35, employer NI 11.15, corporation 3.6, VAT 8.8 (£bn). Fuel: 0.24 per proportional 1%. The July 2026 release was deferred; these have not been rebased to subsequent policy changes.

    HMRC ↗
    Inputs that remain modelling assumptions

    No official source can supply a definitive forecast for these hypothetical packages. These inputs are deliberately labelled; the official organisations above do not endorse them.

    MODEL ASSUMPTION

    CGT scenarios

    HMRC: −£0.540/2.060/3.565bn, then held flat; CenTax: +£11.3bn annually

    Both options enter the budget. Holding HMRC’s year-three loss constant and applying CenTax’s package yield from year 1 are timing assumptions, not published ten-year forecasts. Rates are fixed within each CGT option. Joint tax interactions and CGT household/GDP effects are not estimated.

    MODEL ASSUMPTION

    Wealth taxes

    £12bn per annual-tax point; £600bn billionaire cohort

    Annual yield follows a campaign estimate. Cohort size, £1.8bn existing-tax credit, overlap credits and collection responses are assumptions; the UK yields here are not official costings.

    MODEL ASSUMPTION

    Land tax

    90% taxable coverage × 90% collection

    Applied to the official £6.9tn land total: £55.89bn per rate point. Coverage, exemptions and behavioural effects require a policy-specific valuation model.

    MODEL ASSUMPTION

    Dividend / inheritance reform

    Dividends £3/6/9bn × gap; inheritance £2/4/6bn

    Illustrative packages. Dividend calibration retains the old 8.25-point normalisation, with current 10.75%/35.75% rates: central full reform is £4.545bn at default income rates. Inheritance is additional hypothetical reform, not a costing of an enacted relief change.

    MODEL ASSUMPTION

    Student cancellation

    £200bn asset loss; repayments fall 6% each year

    Assumed recoverable value and runoff, separate from SLC face value and observed repayments. Not an official UK valuation or fiscal classification.

    MODEL ASSUMPTION

    Stimulus eligibility

    65m citizens; 92% domestic share

    Adjustable eligibility assumption, not a measured count of British citizens worldwide. Resident population is not substituted for citizenship.

    MODEL ASSUMPTION

    EU accession

    Year 3; 0/2/4.2% GDP gain; £18/12/10bn annual contribution

    Scenarios, not agreed accession terms or an OBR forecast of rejoining.

    MODEL ASSUMPTION

    Debt and bond illustration

    £2tn conventional; £500bn floating; 14-year refinancing; 4% yield

    Stylised exposures and hypothetical bond. These are not a verified current debt portfolio or a live gilt quote.

    MODEL ASSUMPTION

    Economic and household responses

    Multipliers, supply effects, incidence weights, 35% tax feedback, £8,000 benefits

    All are model assumptions, as are unemployment, inflation and interest-rate response coefficients. Every numerical coefficient and distribution weight is documented in the full equations below.

    Read every equation and numerical assumption ↓
    05 / SHOW YOUR WORK

    Evidence, with the fine print.

    21 SOURCE NOTES
    01 / HM TreasuryOfficial first outturn

    Public Spending Statistics · July 2026 · Table 5.2 ↗

    The pie now uses 2025/26 Total Managed Expenditure of £1,360.122bn. Social protection £407.270bn, health £257.542bn, education £125.721bn, debt transactions £130.305bn, defence £65.418bn and economic affairs £93.959bn; the £279.907bn residual includes other functions and accounting adjustments. Debt transactions are broader than central-government debt interest.

    02 / Bank of England · Megan GreeneLabour-market relationship

    Two puzzles: recent UK labour market dynamics (2024) ↗

    Discusses the imperfect relationship between output and unemployment. We use an illustrative 0.2–0.4 percentage-point unemployment response per 1% cyclical demand gap (central 0.3), the latest ONS 36.241m labour force, held fixed, and £8,000 annual benefits per additional unemployed person. Productivity-only gains do not automatically reduce unemployment.

    03 / Bank of EnglandMechanisms, not rate forecasts

    How monetary policy transmits (2024) ↗

    Explains how Bank Rate affects demand and inflation. The toy’s Bank Rate response is an adjustable assumption: 50 basis points per 1% demand gap by default, plus a small first-year VAT response. It is not an MPC reaction-function estimate.

    04 / Bank of EnglandBond-market framework

    Quantitative tightening: the story so far (2023) ↗

    Describes gilt yields as expected future short rates plus a term premium. We add an assumed 8bp funding premium per percentage point of projected extra debt/GDP, with an adjustable market shock. These coefficients are not estimated from this speech; global rates, liquidity and credibility may dominate.

    05 / Office for Budget ResponsibilityOfficial mechanism reference

    Debt interest: drivers and sensitivities ↗

    Shows why gilt yields, Bank Rate and inflation affect public interest costs differently. Our stylised exposure is £2tn of conventional gilts refinancing over 14 years plus £500bn floating-rate exposure, with 4% reference financing. These are rounded toy inputs, not a reproduction of the OBR debt book.

    06 / Garys EconomicsCampaign proposal

    Stevenson’s published proposals ↗

    Supports 2% annually above £10m, equalising capital gains and dividends with income tax, and inheritance reform. His site quotes £22–24bn annual wealth-tax revenue. This is a campaign estimate, not an official costing.

    07 / Gabriel Zucman · International Tax ObservatoryResearch proposal

    A coordinated minimum tax on the very wealthy (2024) ↗

    The blueprint sets a 2% effective tax floor for people above $1bn, with credit for existing taxes. Its $200–250bn revenue estimate is global. Our £1bn UK threshold, £600bn cohort and resulting UK revenue are illustrative adaptations.

    08 / HM Revenue & CustomsOfficial costing anchors

    Direct effects of illustrative tax changes · June 2025 ↗

    Uses the 2026/27 column: £6.9bn per basic-rate point; £1.6bn higher-rate; £5.35bn employee NI; £11.15bn employer NI; £3.6bn corporation tax (both rates); £8.8bn VAT; £0.24bn per 1% fuel-duty change. The 2026 update was deferred, so these are older latest-available costings. They are frozen without rebasing to subsequent policy changes; large combined changes are extrapolations.

    09 / HMRCPublished behavioural costing

    CGT rate-only scenario · June 2025, section 13 ↗

    Higher CGT rate +10 percentage points: −£0.540bn / −£2.060bn / −£3.565bn in 2026/27–2028/29, including effects on income tax and stamp duty land tax. The simulator holds the year-three loss constant in years 4–10 as an explicit assumption. No scaling to full equalisation. Other tax changes are added at their standalone costings; interactions are not modelled.

    10 / CenTaxResearch costing with assumed annual timing

    Equalising tax rates · August 2025, section 7 and table 1 ↗

    £11.3bn additional revenue, excluding further carried-interest reform, with behavioural responses. Includes rate alignment, a normal-return investment allowance, carry-over of gains at death, and arrival/departure reforms. Uses uprated 2019/20 taxpayer data and a 2026/27 policy baseline including October 2024 changes. The simulator applies this yield every year from implementation. That timing is our assumption, not a CenTax annual forecast. CGT rates remain fixed when other income-tax sliders change. Not an HMRC-endorsed or September 2026 updated forecast.

    11 / Institute for Fiscal StudiesResearch on design and uncertainty

    Capital gains tax reform (2024), section 7.8 ↗

    Explains why revenue depends on the tax base, behavioural responses, death, emigration and transition rules. Does not substantiate the former £8bn central assumption. The simulator offers a specified 10-point rate rise and a complete reform package; it does not assign a costing to rate equalisation alone.

    12 / ONS / Institute for Fiscal StudiesOfficial base / assumed tax design

    Latest land baseline and land-tax design ↗

    The dated data register links the preliminary ONS £6.9tn land estimate for 2025. Applying assumed 90% taxable coverage and 90% collection produces £55.89bn per rate point. IFS informs design principles; neither ONS nor IFS supplies this revenue forecast. Existing property taxes remain.

    13 / Institute for Fiscal StudiesResearch

    Options for tax increases (2025) ↗

    Surveys tax and relief reforms and their trade-offs. Our inheritance package is illustrative: £2bn / £4bn / £6bn at full reform. Our dividend package similarly uses £3bn / £6bn / £9bn, scaled to the gap from current 10.75%/35.75% dividend rates using the original 8.25-point normalisation. This now gives £4.545bn centrally at default income rates.

    14 / Office for Budget ResponsibilityModelling reference

    Dynamic scoring of policy measures (2023) ↗

    Provides a framework for demand multipliers and supply effects. The toy starts with 0.3 for income tax/NI, 0.35 for VAT and 1 for investment, then varies responses. Its ten-year supply, household pass-through and revenue feedback equations are our assumptions, not OBR forecasts.

    15 / Office for Budget ResponsibilityCounterfactual evidence

    Brexit analysis ↗

    The OBR assumes a 4% long-run productivity loss relative to remaining in the EU. Rejoining is a different counterfactual. We assume entry in year 3 and a 0% / 2% / 4.2% GDP-level recovery by year 10, with annual net contributions of £18bn / £12bn / £10bn. No accession terms are predicted.

    16 / Student Loans CompanyOfficial stocks / modelled cancellation

    UK comparisons · financial year 2026 ↗

    UK income-contingent balances total £324.8bn at March 2026. National net repayments sum to £6.0251bn in 2025/26. A £200bn recoverable asset loss and 6% annual runoff remain assumptions. Future loans continue. Cancellation of balances is separate from cash borrowing.

    17 / Office for National StatisticsOfficial denominator

    Families and households in the UK: 2025 ↗

    The denominator is now the published rounded 29.0 million households. GDP uses the sum of the latest four current-price quarters (£3,097.533bn). Both are held fixed as scaling inputs. Household distribution weights are assumptions, not ONS microdata estimates.

    18 / Student Loans CompanyOfficial repayment components

    England 2025/26 · corrected tables ↗

    Table 1A, BR27: £5,339.3m HE net repayments. Table 1B, Q24: £46.7m FE net repayments. Values rounded to £0.1m, as presented by SLC. These are repayments posted to accounts, not the provisional repayment-by-earnings-year tables.

    19 / Student Loans CompanyOfficial repayment component

    Wales 2025/26 ↗

    Annual net repayments: £242.6m. Included once in the UK total.

    20 / Student Loans CompanyOfficial repayment component

    Northern Ireland 2025/26 ↗

    Annual net repayments: £186.9m. Included once in the UK total.

    21 / Student Loans CompanyOfficial repayment component

    Scotland 2025/26 ↗

    Annual net repayments: £209.6m. Included once in the UK total.