"The analysis suggests that the UK's tax-to-GDP ratio could rise to 42.1 per cent by 2030, up from 37.6 per cent in 2024 when Rachel Reeves took office as Chancellor."
"On this basis, the increase would equate to around £130bn in additional annual taxation, or roughly £4,500 per household at current values."
"The UK's projected trajectory would move it closer to higher-tax European economies, reflecting what analysts describe as a structural shift in fiscal policy rather than a cyclical response to short-term shocks."
"Despite higher taxation, the IMF expects UK public debt to continue rising, with gross debt projected to reach 104.1 per cent of GDP by 2030-broadly in line with levels recorded during the pandemic period."
The UK's tax-to-GDP ratio is expected to rise to 42.1% by 2030, up from 37.6% in 2024. This increase equates to approximately £130 billion in additional annual taxation, or £4,500 per household. The UK would surpass all G7 countries in tax increases, reflecting a structural shift in fiscal policy. Higher employer national insurance contributions have contributed to revenue growth but also increased pressures on businesses. Despite higher taxes, UK public debt is projected to rise to 104.1% of GDP by 2030.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]