Brown's Budget Blow for Brits

Tax-News.com, London

29 November 2002

London's Adam Smith Institute (www.adamsmith.org), which calculates Tax Freedom Day each year (the date in the year when someone on average earnings stop working for the Inland Revenue and starts working for themselves) has moved this year's date onwards by two days to take account of changes included in Gordon Brown's pre-Budget statement.

Tax Freedom Day 2002 has moved two days later than forecast in the Spring Budget, from 10 June to 12 June, as a result of the Chancellor's missed targets, says the Institute. And next year, the burden will be even higher, moving four days later than Mr Brown predicted in the Spring, from 11 June to as late as 15 June.

The ASI says it includes the volume of public borrowing in the Tax Freedom Day figures because borrowing must eventually be paid for out of taxation. A Chancellor cannot claim to be virtuous for keeping today's taxes down if tomorrow's taxpayers must face a whopping debt-repayment bill.

The 12 June date for Tax Freedom Day is as late as it has ever been since the depths of the recession in 1981. And things are going to get worse, says the ASI. Even on Gordon Brown's figures, the burden for 2003 will be heavier than this year. But if his pre-Budget predictions are over-optimistic, as they were last Spring, then in reality, Tax Freedom Day will be even later than 15 June, making the UK's tax burden by far the highest tax burden that the British public have ever faced.

The ASI points out that British workers already spend more time working to pay taxes than they do to feed, clothe, and house their families.

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