Analysis from the Institute for Fiscal Studies (IFS) suggests that taxes could increase to 37% of the national income by the next year's election, marking the highest level since the 1940s, with no precedent for a larger increase in any parliament.
The IFS report aims to intensify pressure on the government to alleviate the burden on households and businesses, highlighting that the UK is undergoing a 'decisive and permanent shift to a higher-tax economy.' According to the IFS, the government is expected to collect over £100 billion more in taxes next year compared to pre-2019 levels, equivalent to around £3,500 per household, although the tax hike won't be evenly distributed.
Taxes are set to rise from about 33% of national income at the 2019 election to approximately 37%."