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Finance

Britain's tax bill rises to new record

Tax as a proportion of GDP rose to 35.3% in the 2022/23 financial year

Britain’s overall level of tax is the highest on record, according to new data from economic thinktank the OECD.

Tax as a proportion of GDP rose to 35.3% in the 2022/23 financial year, up by 0.9% from the previous record achieved just one year earlier.

As a percentage, it is the highest for the UK since the OECD began collating the data, though Britain still only ranks as 16th highest among countries that form the organisation.

Across all OECD members, the average tax take is 34% of GDP.

A statement from the Treasury said: “The UK tax system is highly competitive, with the lowest headline rate of corporation tax and the most generous capital allowances in the OECD.

“Our tax to GDP remains in the middle of the pack in the G7 in 2028-29 – lower than France, Italy and Germany.”

Labour said the data was the consequence of 13 years of “Conservative economic failure” with 25 tax rises this parliament alone.

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