The current Tory-led parliament will oversee the biggest set of tax increases since the Second World War, the country’s leading economic think tank has said.
Tax revenue will amount to 37% of national income by the next election, analysis from the Institute for Fiscal Studies suggests, up from about 33% four years ago.
This is the largest increase since records began in the 1950s. The spike amounts to about £3,500 more per household, though it will not be spread equally.
The pandemic is not the main factor behind tax increases, said Ben Zaranko, a senior research economist at the IFS, blaming high spending and pressures on the NHS instead.
“It is inconceivable that this parliament will turn out to be anything other than a tax-raising one – and it looks nailed on to be the biggest tax-raising parliament since at least the Second World War,” he said.
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Key measures contributing to the high tax burden include hiking corporation tax from 19% to 25%, introducing the energy profits levy, and freezing several income tax and national insurance thresholds.