UK households to pay £3,500 more in tax per year amid 'permanent shift' to high-tax economy, analysis shows
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UK households will pay £3,500 more per year in tax than before recent increases. This is according to analysis by the Institute for Fiscal Studies (IFS).
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Taxes are forecast to reach 37% of national income by the next election in 2024, up from 33% in 2019.
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The IFS says the tax burden will be the largest since at least the 1950s due to government spending increases.
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The think tank says the higher taxes don't just reflect the pandemic but represent a permanent shift to a high-tax economy.
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The government is resisting calls to cut taxes, citing rising debt costs from high inflation and interest rates.