UK Tax Has Increased By 50% Under Labour

by Robert Lee, Tax-News.com, London

23 September 2008

UK taxes have increased by a colossal 51% under the leadership of the Labour government, was the claim from a report published on Monday by the Taxpayers' Alliance (TPA).

According to the group (who actively campaign for the introduction of tax cuts within the Uk), a set of Treasury figures released this week have highlighted a large-scale difference in tax revenues collected by the government for 2007/08 - which totals GBP517.1bn - compared to those collected in the year of their 1997 election - a noticeably smaller total of GBP293.8bn.

In addition to this, the group have also noted that during the Labour party's ten year reign, not only has the British tax code doubled in size, but also the cost of administering the tax system has shot up by 75%.

Whilst the TPA's report condems the Labour party as a whole, it allocates a majority of the blame for the country's present economic situation on current prime minister, Gordon Brown, alleging that the PM has managed public spending inadequately, resulting in the loss of billions of pounds' worth of taxpayers money, which has left the country ill-equipped for an economic downturn.

Speaking out about the TPA's allegations, Matthew Elliott, chief executive of the Taxpayers Alliance remarked:

"For all Gordon Brown's boasting, his economic stewardship has failed people on every count.

"Ordinary taxpayers have seen their bills rise and rise but our services have not improved in return. With the credit crunch tightening its grip, it's clear that the country is poorly prepared for tough economic conditions, and it is Gordon Brown who is to blame."

Mr Brown has experienced the pressure to resolve the tax burden for some time now, with much public criticism over his handling of the the UK's current economic crisis. Earlier this month, before the TPA report came to light, Alan Milburn, the former Cabinet minister, warned the PM in a pamphlet published late last week that voters want tax to fall, explaining:

"It is not just that the public has reached the limits of what it will pay in taxes, although it has. People in low- and middle-income families are under pressure and feeling the pinch, so, inevitably, public spending growth in the period ahead will be lower than in the period just gone."

This is coupled with the enormous competition the Labour party is currently up against from several opposition parties, who have all stepped up their popularity campaigns by promising the implementation of huge tax cut packages should they win the next general election.

However, in response to the emergence of the TPA's report, the Treasury has issued its own response to the situation, claiming that despite taxes becoming higher for the country's higher earners, low income families have actually received more help from the government over the past ten years with the introduction of tax reducing measures, such as the family tax credit:

"The claims made about the UK's tax burden are wrong," a Treasury spokesman proclaimed, adding:

"The fact is that since 1997, all families on average earnings or less, have seen their tax burden fall or remain unchanged.

"Tax burdens for low income families with children in UK have fallen significantly."

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