Average Briton Spends Six Months Working For The Treasury

by Robert Lee, Tax-News.com, London

11 April 2003

According to the Adam Smith Institute, in 2002 the average Briton worked until June 1st before his share of taxes were fully paid to the Treasury. As a result of Chancellor Gordon Brown's budget however, 'tax freedom day' has been put forward again to June 2nd.

By next year, the ASI estimates that the average British worker will have to work until June 7th before his pay actually goes into his own pocket, whilst in 2005, he will be working until June 9th before he receives any of his own income.

However, this does not take into account the Chancellor's massive borrowing requirement, which must be paid for eventually. According to ASI calculations, if this is added to the figures produced by Mr Brown, then 'tax freedom day' was actually 11 days later last year. Using these figures, it will be June the 12th this year before the Treasury has had its fill of the UK taxpayer's hard earned income.

The free market think-tank warned that UK citizens should not be fooled by the Chancellor's £505 billion give away in this year's budget either. Tax increases announced last year will dwarf this amount, raising the Treasury an extra $4.2 billion.

The increase in National Insurance Contributions has been particularly costly to the average Briton, the Institute revealed. Without the 1% increase, British taxpayers would only have to work until May 30th this year before they could start spending their own money.

Recommended