British middle-class families face an increase in their tax bill of almost £8,000 by 2025
This is according to an analysis by The Telegraph. This equates to around $10,000 in extra tax each year.
A series of Labour tax rises will come into effect next year. This means households will have to pay thousands of pounds more in tax on everything from their children’s education to council tax.
Chancellor Rachel Reeves presented her first national budget in the autumn, which included tax increases of £40 billion. Reeves refuses to rule out the possibility of further tax increases.
The Institute for Fiscal Studies (IFS) warned last night that as the tax burden “rises to levels not previously seen in this country”, it is inevitable that families will feel under pressure.
The opposition is, of course, critical of the skyrocketing tax increases. Shadow Finance Minister Andrew Griffith says:
– This level of tax raid is completely unacceptable and they don’t understand what it’s like trying to raise a family to a reasonable standard. This government is completely out of touch with the middle class of Britain.
Griffith also said this is “one of the biggest transfers from the aspirational class to the public sector that we have ever seen”.
– It sends a shocking signal to anyone trying to do the right thing for themselves and their family to get on in life. We’re heading into a January characterised by discontent. The best New Year’s gift Rachel Reeves can give is to change course quickly.
The calculations apply to families where both parents earn £55,000 a year, which applies to 20 per cent of the workforce. This assumes that the family has one pupil at a private school. This alone would increase taxes by over £2,600.
Education Minister Bridget Phillipson defended the introduction of VAT on private schools, which comes into effect on 1 January, saying that tax breaks for private schools are a “luxury our country cannot afford“.
In addition, Britons have had to cope with high energy prices and significant price increases for food and other essential groceries, often justified by the goal of achieving Net Zero to save the world from climate change that politicians across Western Europe are committed to.
Low-income families will not be hit as hard by the tax increases. A family with an average income of £37,340 per adult will be hit by extra taxes of £2,529 in 2025.
But lower-income families feel the rise in the price of essential goods most acutely, as the increase in the cost of energy and groceries is regressive: the lower your income, the harder you are hit.
At the same time, the mass immigration of illegal migrants continues, arriving in boats across the English Channel. These migrants are often housed in rickety hotels, costing the UK huge sums of money.
Neither the Tory government nor Starmers Labour seem able to do anything about this problem, which could, of course, be solved overnight, as the UK is an island.
Many Brits feel that there are no politicians who really want to stop mass immigration, a feeling also shared by many Norwegians.
The question now is how far the British will allow themselves to be pushed before they too take to the streets like the French.