UK IT Contractors Point To Tax Surge Under Labour

by Robert Lee, Tax-News.com, London

21 June 2002

In an analysis of just-released Inland Revenue estimates for tax receipts to the Treasury for fiscal 2002-03, Contractor UK, an internet portal aimed primarily at IT contractors, has reported a surge in taxes since Labour came to power in 1997.

Although the report admits that the tax burden is spread more equitably between rich and poor taxpayers under Labour, with the rich shouldering a larger proportion of the overall tax burden, and the poorest taxpayers representing 50% less in terms of tax receipts than in 1997, Contractor UK reports that the UK's tax burden has increased 'at an astonishing rate' during the last 5 years.

Citing the Revenue figures, the report revealed that:

'In 1996-97, Inland Revenue taxes and duties raised £103 billion. The figure for 2001-02 was £149 billion,' adding that: 'This represents an increase of nearly 50% in just five years.' According to the newly released Inland Revenue statistics, the combined estimate for this financial year is £155 billion.

According to the report, income tax has accounted for the largest proportion of this increase, with corporate taxes increasing at a much lower rate over the past five years. Contractor UK also revealed that stamp duty has almost trebled during Gordon Brown's time in office, bringing in around £8 billion per year, and that the country's tax base has become substantially broader under a Labour government.

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