Brexit & EconomyPoliticsOECD says UK tax burden is set to surge

OECD says UK tax burden is set to surge

Concerns raised as international body reports state spending will account for more than 45% of  UK GDP next year

The Organisation for Economic Co-operation and Development has announced that
the rise in Britain’s tax burden will be fourth largest in the West over the
next two years.  

OECD forecasts detailed
state spending would reach 45.3% of gross domestic product next year, exceeding
Germany’s which is set to hit 45.1% in 2007.

The OECD has given warning that Britain’s rising tax burden and high public
spending is out of step with international practice.

‘The prudent course would be to get a grip on public spending and cut taxes
now,’ Corin Taylor, head of research at the Taxpayers’ Alliance told
The Daily Telegraph.

From a low point of 37.5% of GDP in 2000, the proportion of state spending
has risen steadily and the imminent leapfrogging of Germany has been interpreted
as a pivotal juncture.

Peter Spencer, economic adviser
to Ernst
& Young’s
Item Club warned: ‘With public expenditure heading
towards 45% of GDP, the real worry is that a lot of money is actually
borrowing.’  

Related links:

Tax returns reveal massive pay rise for
GPs
 

Treasury urged to test tax cut theory 

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