Britain’s tax burden reaches its highest level since Harold Wilson was in charge

Britain’s tax burden has reached its highest level for almost half a century, a report has found.

The taxman is set to take £724.9billion this year – 34.3 per cent of GDP.

That is the highest proportion since 1969-70, when the country was run by a Labour government under Harold Wilson.

The report, written by the TaxPayers’ Alliance campaign group, also said overall Government revenues are at a 32-year high at 37 per cent of GDP, a measure of the size of the economy.

Harold Wilson smokes a pipe at a Labour Party press conference in 1974

In total, the Government will raise £775.8billion – equivalent to around £28,000 from every household, according to the study.

The research also found that new taxes have hit poorer households the hardest. It discovered that the bottom 10 per cent of earners in Britain pay 49.5 per cent of their income in tax.

The report warned that taxes could have to rise even further to fulfil the promised £20billion-a-year funding boost for the NHS.

Pressure is mounting for spending increases elsewhere, with vigorous calls for cash injections for defence and education. But the campaign group urged ministers to steer clear of fresh taxes on stretched families and businesses and instead re-prioritise existing budgets.

John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘The gradual increase of taxation and the introduction of new taxes have hit poorer families the hardest, leaving them with less and less at the end of the month to pay for life’s necessities.

‘The funding models for social care and the NHS need real reform, not ever higher taxes. Instead of taking even more money away from families and businesses, the Government should consider cutting taxes, or reducing spending in other areas.’

Recent suggestions for higher taxes have included a new levy on chocolate, ending the fuel duty freeze, and higher inheritance tax, council tax and business rates to pay for social care.

Prime Minister Theresa May and her husband Philip attend church in Maidenhead yesterday

Prime Minister Theresa May and her husband Philip attend church in Maidenhead yesterday

The report said: ‘It is wrong to assume that the only way to raise more revenue would be to increase tax.

‘Evidence shows that reducing tax rates can bring in more revenue.’

It said corporation tax receipts have increased by 25 per cent in real terms after headline rates came down from 28 per cent in 2010-11 to 19 per cent in 2017-18.

Separate research by chartered accountants UHY Hacker Young found that £28billion has been raised in new taxes since the credit crunch.

It said new major taxes introduced by the Government since 2008-09 included the sugar tax, diverted profits tax – which was brought in to counter perceived tax avoidance by multinational companies – and the apprenticeship levy.

Darren Grimes, a tax partner for UHY Hacker Young, said: ‘Past and present governments seem to be addicted to tinkering and introducing new measures. Every new tax makes the UK a harder place to do business.’

A Treasury spokesman said: ‘We want Britain’s families to earn more and keep more of what they earn. That’s why we’ve cut income tax, increased the National Living Wage and have raised the personal allowance to £11,850.’



Read more at DailyMail.co.uk