Government raises extra £100bn in taxes

The government is raising more in tax revenue as a percentage of national income than at any time since the 1940s according to research from the Institute for Fiscal Studies (IFS). Contributory factors include the increase in corporation tax from 19% to 25% the energy profits levy and freezes to various income tax and National Insurance thresholds.

Between 2019-20 and 2024-25 tax revenues are set to increase by 4.2% of national income. By the time of the next election on current forecasts taxes will amount to around 37% of national income up from around 33% in 2019. Compared with a world in which taxes had stayed at the same fraction of national income the UK government will be raising upwards of £100bn more in tax revenues each year. This tax rise is equivalent to around £3...