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Labour tax measures set to raise annual burden by nearly £85bn by 2031-32
Measures announced by Rachel Reeves and John Healey are projected to add nearly £85 billion a year to the tax burden by 2031-32, according to figures maintained by the Office for Budget Responsibility (OBR). The estimates highlight the scale of Labour’s tax-raising policies, while the OBR forecasts that tax revenue will reach a record 38.6 per cent of GDP by that year.
The latest Budget package is projected to raise £7.52 billion annually by 2031-32, including higher levies on income from savings and property. That is on top of about £77 billion in net increases announced by Reeves, including higher employer National Insurance and an extended freeze on tax thresholds. The figures estimate policies as announced and do not show whether they ultimately raised the expected sums; the OBR now estimates Reeves’s 2024 package at £44.57 billion, slightly below Norman Lamont’s 1993 tax-raising Budget at £45.66 billion.
In short
- Tax measures are projected to add nearly £85 billion a year by 2031-32.
- The latest Budget accounts for £7.52 billion of the projected annual increase.
- The OBR forecasts a record tax take of 38.6 per cent of GDP.
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Originally published by Daily Mail as “Labour’s ‘crushing’ tax hikes worth £85BILLION a year – after Healey’s Budget added another £7.5bn to burden”.