The number of people paying income tax at 40% or above will reach 7.8m by 2027-28, nearly four times higher than during the 1990s when only the wealthiest earners were caught by higher rates of tax, showed analysis by the Institute for Fiscal Studies (IFS).

For the 40% rate to impact the same fraction of people as it did in 1991, the higher rate threshold would have to be nearly £100,000 in 2027-28 – almost double the current £50,270.

In the 1990s no nurses and just one in 16 teachers paid higher rate tax, but by 2027-28 more than one in eight nurses and one in four teachers are set to be higher rate taxpayers, the IFS said. Now an increasing number of nurses, teachers and electricians are being dragged into the higher rate, while nearly half of lawyers will face higher tax bills.