We’ve all wondered about it at one point or another. Every time you get your pay slip and see how much has been seized by the Treasury. Every time you fill up your car or buy a pint. Every time the direct debit for your council tax leaves your account. How much am I really paying?
Well, we have the answer. I’m not much of one for trigger warnings but you might want to make sure there’s nothing breakable within easy reach before you read on as it’s liable to end up being hurled against the wall. The TPA wonks have worked out just how much tax your household can expect to pay over its lifetime.
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The average household is now facing a lifetime tax contribution of £1,277,580 including almost £600,000 in income tax. While the figures are based on 2022-23 - the latest data available - and don’t take into account the national insurance cuts from the dying days of the Tory government, Rachel Reeves’ £40 billion tax raid last year makes it all but certain the figure is even higher now. Adding insult to injury, households in the bottom 20 per cent by income saw the greatest percentage increase in their lifetime tax bills, increasing by £79,110 or 17.1 per cent in just one year from £462,480 in 2021-22 to £541,590. Have a read of the paper in full here. Anne Strickland, lead researcher on the project gave us her rundown of all you need to know here.
To put these numbers in perspective, it would take the lifetime tax contributions of 2,149,846 households to pay off the national debt or 11,021 to cover the foreign aid budget in 2024. The average household now has to devote 19.3 years’ worth of gross income to pay their lifetime tax bill.
Perhaps unsurprisingly, our findings really caught the attention of the national press with some of Britain’s most read newspapers covering our report. Write ups in the Daily Mail, Sun, and Times were followed by op-eds in CapX, GB News, and the Spectator. John O’Connell hit the nail on the head when he told journalists: “Most households are now tax-millionaires but rather than look at ways to reduce the tax burden the chancellor is widely expected to launch another devastating raid on household budgets.” Meanwhile, William Yarwood could be found in the GB News studio sitting down with Martin Daubney - check out his interview here.
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While these findings should serve a warning for the chancellor as she puts the finishing touches to her budget, it looks like the situation is about to get even worse. None of the briefings coming from the treasury ahead of the budget are good news. From taxing the gifts you give your children to outright manifesto-breaking income tax hikes, Reckless Rachel is gearing up to hammer families hard!
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Which is why we’ve launched our latest online tool enabling you to write to your MP, urging them to oppose any tax hikes in November’s budget. Not only did Labour MPs pledge not to raise taxes on working people in their manifesto (a pledge that didn’t exactly survive last year’s budget), the chancellor promised the tax rises last year were a one off and that she wouldn’t be coming back for more. Now she’s preparing to raid the pockets of taxpayers across the country. The TPA will never let tax rises go unchallenged but we need your help, write to your MP today and make your voice heard.
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Is It Ever Possible To Fix The Tax System?
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Appropriately timed for this week’s episode of a nation of taxpayers, Duncan Barkes is joined by Daniel Herring, head of economic and fiscal policy at the Centre for Policy Studies, and our campaigns director, Elliot Keck.
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They discuss this week's speeches about the economy from Rachel Reeves and Nigel Farage, alongside options for reforming the tax system.
Catch the latest episode of a nation of taxpayers now on Apple Podcasts, Spotify, and YouTube.
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It’s hard to recall a more damaging week for the BBC’s reputation than the one we’ve just seen. Drip fed by the Daily Telegraph, a leaked memo has revealed widespread editorial and reporting failings at the Beeb, including the doctoring of speeches from president Trump, the boosting of claims from Hamas (a proscribed terror organisation) during the war in Gaza, and the "effective censorship” of gender-critical stories.
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And of course, all of this is funded by the TV tax AKA the licence fee. Regular readers will be very familiar with our opposition to the hated, anachronistic, TV tax so it was only natural that the Express sought out our views on the latest controversies with William Yarwood telling readers: “Just when you thought the BBC could not stoop any lower, they've failed to meet even the lowest of expectations.” The end of the licence fee can’t come soon enough!
As Auntie lurches from crisis to crisis, make sure you’re getting the inside track from Duncan’s monthly missive, BBC Watch. Sign up here.
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The latest scoop from our investigations unit, has shown how £170,000 of taxpayers money was wasted for civil servants to attend MIPIM in March this year.
If you’re not familiar with MIPIM, on the face of it, it’s the annual real estate conference held in Cannes for policy makers, council busy bodies, developers and the like network and talk about getting houses built. The reality though is that it’s a boozy three-day event on the French Riviera where attendees claim “important meets must be done in the morning” as “afternoons can turn to chaos once the rosé starts to flow.” And you’re helping to pick up the tab.
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Naturally, our investigations guru, Callum McGoldrick, was furious and gave the spending both barrels when he spoke to the Mail: “With residents struggling through a long, difficult winter, council staff are in the south of France toasting their near universal failure to hold down council tax bills. Councils need to urgently stop these boozy bashes.”
Perhaps councils should focus on keeping council tax down before they send staff to swan about France sipping champagne?
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Speaking of foreign jollies, the mayor of London has been in Brazil this week for the latest COP conference but he also took time back in the summer for a four-day tour of Africa, visiting Nigeria, Ghana, and South Africa, and racking up a bill of more than £83,000 in the process. With business class flights, Khan and his 11-strong team burnt through £16,000 a day.
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Elliot was fuming when he heard the news, blasting in the Express that taxpayers in London would be “outraged to see their cash being used for Sadiq Khan and his team to go galavanting across the globe. Hard-working Londoners are paying hand-over-fist for this jet-setting mayor while crime surges and local services crumble. Sadiq Khan should be focusing on delivering for the people of London, not going on jollies to far-flung destinations.”
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The price of virtue signaling
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Another week, another blockbuster blog from Jonathan Eida. Zeroing in on his favourite topic, Jonathan once again takes aim at environmental, social, and governance regulations and ratings, and the damage they’re doing to the financial services sector.
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Jonathan highlights the growing remit of the Financial Conduct Authority, reaching beyond trying to ensure the stability of financial markets and rightly concludes: “This move expands the state’s reach into financial services, piling new burdens onto firms including many not directly involved in the sector. While business groups may publicly endorse it, the reality is that it will slow growth, stifle innovation and squeeze out smaller players. The pattern is familiar across industries, more regulation, less competition. Instead of tightening the regulatory net, the government should be cutting red tape, not weaving more of it.”
Have a read of Jonathan’s blog in full here.
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Benjamin Elks
Grassroots Development Manager
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