TPA analysis shows higher taxes are hitting the poorest families hardest over the last decade

For Immediate Release

  • New analysis, released today by the TaxPayers' Alliance (TPA), shows that families on the lowest incomes paid 47.6 per cent of their gross income in tax in 2017-18, up by 4.4 per cent since 2008-9.
  • Meanwhile, the richest tenth pay 33.5 per cent of their gross income in tax. This is up by 0.6 per cent.
  • That means the poorest pay around 14.1 per cent more than the richest, as a proportion of gross income.
  • Since 2008-9, the increase of the tax burden on the poorest households has been around 7 times the size of the increase on the richest households.
  • This is according to data released today by the Office for National Statistics (ONS).
  • TPA research has previously revealed that the tax burden in Britain hit a near 50-year high, reaching to 34.6% of GDP for 2018-19.

New analysis by the TaxPayers' Alliance shows that the bottom 10 per cent of households in Britain are paying 47.6 per cent of their income in tax, over 14 per cent more than the proportion paid by the top 10 per cent. The analysis, using Office of National Statistics data, demonstrates that the poorest continue to be slammed the hardest by Britain's record high tax burden. On council tax, one of the main offenders, the bottom 10 per cent of households have seen the amount paid rise from £852 to £914 in real terms, or a 7.3 per cent rise. For the top 10 per cent, it has fallen by 4 per cent.

 

Click here to see the full analysis

 

Key findings:

  • The bottom 10 per cent of households lost 43.2 per cent of their gross income to taxes in 2008-9. In 2017-18, that had risen to 47.6 per cent.
  • In real terms, the poorest 10 per cent of households paid £4,409 in direct and indirect taxes in 2008-9. In 2017-18, this had risen to £5,471.
  • The top 10 per cent of households lost 32.9 of their gross income to taxes in 2008-9. In 2017-18, that had risen to 33.5 per cent.
  • Between 2008-9 and 2017-18, the poorest tenth of households on average lost 45.6 per cent of their gross income through taxes. The richest 10 per cent had 33.9 per cent of their gross income taken through the tax system over the same period.
  • Across all households, 33.8 of gross income was lost to taxes in 2008-9. In 2017-18, this was at exactly the same level.
  • On council tax, the bottom 10 per cent of households have seen the amount paid rise from £852 to £914 in real terms, an increase of 7.3 per cent. For the top 10 per cent, the change has been 4 per cent less in real terms.

John O'Connell, chief executive of the TaxPayers' Alliance, said:

"Taxpayers at all levels are struggling under the strain the highest tax burden for nearly 50 years, but what is also clear is that taxes can hit the poorest families hardest. The lowest earners in Britain pay almost half of their income in tax, leaving them with less and less at the end of the month to pay for life's essentials. Politicians must get real and wage a war on waste, save money on pointless projects like HS2, and start cutting taxes."

 

Click here to see the full analysis

 

TPA spokesmen are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)

Media contact:

Chloe Westley
Campaign Manager, TaxPayers' Alliance
chloe.westley@taxpayersalliance.com
24-hour media hotline: 07795 084 113 (no texts)

Notes to editors:

  1. Founded in 2004 by Matthew Elliott and Andrew Allum, and now with 80,000 supporters, the TaxPayers’ Alliance (TPA) fights to reform taxes, reduce spending and protect taxpayers. Find out more about the TaxPayers' Alliance at www.taxpayersalliance.com.
  2. TaxPayers' Alliance's advisory council.