Income tax bill hits record high

12 April 2012

The income tax burden has reached its highest level since records began two decades ago, official figures reveal.

The Office of National Statistics has published figures that show income tax and national insurance costs 23.6p for every £1 earned.

The latest figure shows the tax burden has reached the highest level since records began 20 years ago, having increased from roughly 18p in the pound since 1997.

In total, the nation's tax bill has risen by £219 billion since Labour came to power - the equivalent of £9,000 for each household.

The ONS research showed that taxes on income rose by 6.7 per cent last year, which was higher than the 4.6 per cent rise in wages and salaries.

Shadow Chancellor George Osborne said: "Gordon Brown has relentlessly piled taxes on hard pressed families.

"That is why we have the double blow this Christmas of a less competitive economy and falling living standards."

The report, The Quarterly National Accounts for the third quarter of 2006, shows the tax burden rose by 3.1% in the three months to October and 9.2% since the start of the year. Household debt levels are also at an all time high of near £1,300 billion.

The ONS analysis uncovered a sharp drop in the proportion of household cash kept in savings. This time last year, families were saving 6.2 per cent of their income, but that figure has steadily fallen over the past year to 5.1 per cent.

The Treasury said ONS figures did not take into account income savings, shares and asset disposals. A spokesman said: "As a result of all tax and benefit reforms introduced since 1997, all households will be on average £1,000 a year better off in real terms from April 2007."

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