UK tax revenues jumped by £85bn as Covid reliefs phased out – OECD
UK tax revenues rose by £85.1 billion over the last financial year, according to figures from the Organisation for Economic Co-operation and Development (OECD).
The global economic body found that total revenue from taxes across the UK rebounded to £775.6 billion over the year to March 2022, from £690.5 billion a year earlier.
The jump was driven by the phased withdrawal of a raft of tax reliefs for households and businesses which had been introduced during the pandemic.
Tax revenues were also £225.2 billion higher than a decade ago, a roughly 41% increase, according to the analysis of annual statistics by the OECD.
Separate analysis from real estate adviser Altus Group showed an £8.3 billion increase in total tax receipts from property alone.
In the UK, property taxes include all receipts from council tax, business rates, SDLT (stamp duty land tax) and LBTT (land and building transaction tax) in Scotland.
Altus said taxes on property increased by 10.4% to £88.4 billion in the UK for the 2021/22 financial year.
Property taxes accounted for 11.4% of all taxes collected in the UK, according to the analysis.
It comes after recently-appointed Chancellor Jeremy Hunt also announced tax increases and spending reductions as part of the autumn budget in an effort to address the UK’s fiscal hole.
Robert Hayton, UK president at Altus, said: “Despite a manifesto pledge to lower the burden ahead of the 2019 general election, and the welcomed measures within the autumn statement, business rates receipts across the UK are still set to rise by £1.8 billion from April 1 for 2023/24 with a further unconscionable £4.9 billion jump the year after.”
A Treasury spokesman said: “Our priority is to restore economic stability in the fairest way possible, which is why we have protected the most vulnerable and those with the broadest shoulders – from businesses to individuals – will bear more of the burden to strengthen public finances.”Published: by Radio NewsHub