▲ | louthy 5 days ago | |
From the IFS [1]: "UK tax revenue was 33.5% of gross domestic product (GDP ) in 2021 – the most recent year for which there are internationally comparable data. This is slightly below the average for both the G7 (36.3%) and the OECD (34.1%). While UK taxes are higher than in most other English-speaking developed economies (such as Australia, Canada, New Zealand, Ireland and the United States), they are considerably lower than in most other western European countries (average tax revenue amongst the EU14 was 39.9% of GDP ). Under current government plans, UK tax revenue is forecast to increase to 37.7% of GDP by 2027–28. This would take the UK above both the current OECD and G7 averages. It should be noted, however, that other governments may also increase their levels of taxation by then." If it's just Germany we're comparing to, then there are still multiple percentage differences. Germany is close to the average of 39.5% of GDP and the UK is 33.5% raising to 37.7%. Nearly 2% difference, which is a lot. It doesn't matter how the tax is raised, it's the total investment that matters. We have been a low tax economy for a long time (compared to similar European nations), that was my entire point: if we want better services then we are unlikely to get them in a low tax economy. Recent changes to the tax levels doesn't change how we got to this position in the first place. [1] https://ifs.org.uk/taxlab/taxlab-key-questions/how-do-uk-tax... |