BRITS will be paying an extra £104billion in tax by the end of this decade compared to the last one, experts warn.
Even if Jeremy Hunt cuts levies in next week’s Budget, it will only offset part of the record tax revenues rise.
GettyBrits will be paying an extra £104billion in tax by the end of this decade[/caption]
Despite recent National Insurance cuts, analysis reveals taxes this year will be £66billion higher than if revenue levels had stayed at 2018-19 levels.
Forecasts show that with some previous tax hikes still to work their way through, revenue as a share of national income by 2028-29 will in total be £104billion bigger in today’s terms than a decade earlier.
Expert Carl Emmerson, of the Institute for Fiscal Studies, said: “Are we putting up taxes as a share of national income now because we didn’t in the 2010s?”
The rise is fuelled by the freezes to thresholds in personal direct taxes, the IFS says.
Tory MP Kevin Foster said: “A higher tax burden gives less incentive and reward for workers.”
A Treasury spokesperson said: “Total departmental spending will be £85billion higher after inflation by 2028-29 than the start of this Parliament.”
Meanwhile, stamp duty cuts for home buyers must be Chancellor Hunt’s priority to help boost growth at the Budget, the IFS has warned.
The duty “gums up the market”, stopping new and young people getting on the ladder.