CPS Study Shows UK Tax Burden Increase Of More Than GBP6,000 Since 1997

by Jason Gorringe, Tax-News.com, London

23 June 2006

New research recently published by the UK's Centre for Policy Studies has pointed to a significant increase in the tax burden of individual taxpayers since Labour came to power in 1997.

The study, entitled 'The tax double whammy: More tax costs more than you think', suggested that by the time of the next election, the tax burden will have gone up by 4.2% of GDP.

The report's author, Charlie Elphicke, went on to argue that:

"Since 1996/97, the tax burden has increased by the equivalent of GBP6,182 a year in real terms for every household in the UK (or by GBP9,098 in cash terms)."

He went on to add that:

"This additional tax burden has an effect on growth. Latest estimates suggest that the increased tax burden will reduce the UK’s annual economic growth by between 0.3% and 0.5% a year."

Unsurprisingly, the research was seized on by the rival Conservative Party, with Shadow Chancellor George Osborne observing that:

"This excellent piece of work by the CPS shows that Gordon Brown has been a one-man tax creation industry. The longer he remains in power the more we will see the burden of taxation on Britain's hard working families rise. It is exactly the wrong approach to competing in the new global economy."

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