July 19, 2019
This report from the UK think tank the Institute for Fiscal Studies compares money raised by tax revenues in the UK with other OECD countries.
The UK raised 35% of national income in tax in 2018–19. Figure 1 shows that tax as a share of national income has fluctuated between around 30% and 35% of national income since the end of the second world war and been rising since the early 1990s. Tax revenues are now, just, higher as a share of national income than at any point since the late 1960s.
An ageing society is increasing pressure on health, social care and pension systems such that maintaining the same quality and scope of public services in the future will likely require higher taxes as a share of national income. Tax increases have been on the public policy agenda. For example, in the 2017 general election, the Labour party proposed a package of tax measures that it expected to raise £50 billion (2% of national income) a year. This would have taken tax revenues to 37% of national income.Read Full Report