Have a taxing christmas

The latest figures of public sector finances have been released. They show direct taxation figures are at their highest since records began 20 years ago, taking 23.6p in a £1 compared with 18.7p in a £1 in 1997. This is before indirect taxation. The Treasury argues that despite the headline figures people are better off in real terms:

“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.”

The figures were due to be released Thursday after Christmas but ONS decided to release them early (yesterday) apparently because of Christmas.

  • willis

    I note from the Telegraph story that it is families who will be hit. I thought that it was an income tax so even single people would be affected.

    Or perhaps the Telegraph thinks only “Hard-working families” are affected.

    Anyone want to nominate a lazy family?

  • Fraggle

    This is barely relevant to northern Ireland where income is much lower than in Britain. The direct taxation figure here will be much lower since we earn a lot less on average.

  • Comrade Stalin

    It’s generally well-off, middle class people who whine the most about tax, forgetting that part of the reason for their wealth is the stability and wealth-creating opportunities of the society that they live in. Personally I (just about) pay tax at the higher rate, so I probably have more grounds for whining than a lot of people. But that’s the price for living in a (relatively) stable society where redistribution is required to maintain the necessary welfare state and public education system. It doesn’t mean that I have to like how it’s spent though.

    The Telegraph does not take into account things like working families tax credit etc. I know a few people who have fairly large young families, and these benefits make a huge impact on the net amount of tax they actually pay.