New analysis from Barnet Labour reveals the staggering impact of Rishi Sunak’s tax hikes on families in the borough. Following the budget, the average household is set to be £870 worse off – clawing £128 million from Barnet’s economy.
The budget confirms that the UK has the highest tax burden in 70 years – and rising. For every 10p working people will pay in tax, they will get just 5p in return as a result of the National Insurance cuts.
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Publishing the analysis, the Labour Leader of Barnet Council, said:
“The budget lifted the lid on 14 years of failure. After more than a decade in power the Conservatives have left our economy in recession, taxes at their highest level in living memory, mortgages and rents are sky high, and our public services are on their knees.
“Barnet can’t afford five more years of Conservative Government. It’s time for change – and Labour has a plan to get Barnet’s future back.
“A Labour administration will put growth at the heart of our mission-driven government. We will help create good jobs and opportunities all over the country – including right here in Barnet.”
“Barnet Labour has set aside £9m support package for those residents suffering the most from the Conservative cost of living crisis, which includes the £2m Barnet Resident Support Fund, as well as Council Tax Relief and Housing Payments. We are working with local business to boost apprenticeships and skills.
“It is critical we get a Labour government elected so we can see action at a national level as well.
“The budget was the final proof – this government is out of ideas and running out of road. A General Election can’t come soon enough.”
Households will be £870 worse off under Sunak’s tax plan on average, giving 5p for every 10p being taken from residents
This budget confirms the UK has the highest tax burden in 70 years, rising every year of the forecast period
OBR Public Finances Databank https://obr.uk/data/
OBR figures show that for every 10p extra working people will pay in tax under the Tories the forecast period. plan, they will only be getting 5p back as a result of the combined NICs cuts
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Calculated using the £21.4bn of tax cuts calculated by the OBR, compared to a total being raised by 2028/29 of £41.1 from threshold freezes and £4.8bn from council tax. The OBR’s estimate of a £5bn council tax bombshell from Tory policies this parliament as included in the OBR policy measures database https://obr.uk/data/
That includes OBR’s revised estimate for the impact of tax threshold freezes, that raise £41.1bn over the forecast period. (OBR EFO table 3.8)
It will create 3.7 million new taxpayers by 28-29. (OBR EFO, March 2024, Table 3.7 )
