AbstractThis Briefing Note examines the evolution of the tax burden over the last 50 years. It then looks at the proposals in the parties' manifestos. * Net taxes and National Insurance contributions have risen from 34.8% of national income in 1996ֹ7 to 36.3% in 2004ְ5. According to Treasury projections, these will rise to 38.5% of national income in 2008ְ9. This would be the highest level since 1984ָ5. * Total government revenues have averaged 38.4% of national income under the two Labour governments, compared with 40.6% over the 18 years of Conservative government from 1979 to 1997. According to Treasury forecasts, revenues will equal 39.3% of national income in 2005ְ6, rising to 40.6% by 2009ֱ0. This would be the highest level since 1988ָ9. * Over Labourҳ two parliaments since 1997, current receipts have risen by 3.5% a year on average, in real terms, while national income rose by 2.8% on average, leaving national income minus tax to rise at 2.4% on average. * Of the total ò8.5 billion revenue increase seen since 1996ֹ7, ñ9.1 billion was due to discretionary changes to the tax system, with the remainder being due to the impact of the economy on overall revenues. The largest discretionary change occurred in the first Budget after the 2001 election (the Spring 2002 Budget), which increased taxes to yield an additional ù.9 billion by 2005ְ6. * Between 1997 and 2005, the UK saw one of the highest increases in revenues among OECD countries, although the UK remains a low-tax economy compared with EU countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/14989/.
Date of creation: Apr 2005
Date of revision:
Contact details of provider:
Web page: http://www.ucl.ac.uk
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kieron Jones).
If references are entirely missing, you can add them using this form.