Fury at Labour as Brit households face whopping tax burden by 2031 & tax rises seven times faster than US

Comment now Next LABOUR is facing fury over hiking taxes at the highest rate among major economies, new figures show. The tax burden on the households and businesses is set to hit 41.9 per cent by 2031 – accelerating faster than G7 counterparts. Chancellor John Healey is under pressure not to increase taxes at the next Budge Credit: Getty Figures from the IMF show the tax burden in the UK is rising seven times faster than in the US and three times the rate in France Credit: Getty Advertisement The rise is some SEVEN times faster than America’s rate and THREE times the rate in France , new IMF figures show. The hike is 11.9 per cent in the UK compared to 1.6 per cent for America and 3.4 per cent for France since 2024. Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. Britain is eighth overall in global league table for hiking taxes over the same time frame behind countries such as Sudan , the Marshall Islands and Yemen. Shadow Chancellor Andrew Griffith last night said: “Labour promised not to raise taxes, but these figures confirm the tax take is rising faster than the entire rest of the G7 put together. Read More on Money News SHOP DROPPED Poundland on brink of COLLAPSE as rival withdraws rescue deal for 530 stores FUEL FOR THOUGHT Warning over Winter Fuel payment texts targeting pensioners this October “You cannot tax your way to growth. The Chancellor must rule out tax rises at the Budget and instead get a grip on his out-of-control welfare spending.” Ex-Chancellor Rachel Reeves faced fury for hiking national insurance in her first Budget in 2024 that put the squeeze on firms’ hiring and investment plans. It comes as a pre-Budget study this week showed Chancellor John Healey – due to arrive at the International Monetary Fund for meetings this week – is facing a funding gap of around £35billion. Some £25billion in extra cash will be needed to maintain Whitehall cash budgets hit by soaring inflation amid the Middle East conflict. Advertisement Most read in Money BATTER THAN EVER UK's top 10 chippies revealed… from quirky drive-thru to 1950s-style diner PRICE TAGGED Four-bed home in picturesque seaside town on sale for £1 - but there's a catch RISKY BUSINESS Poundland could fall into administration in 'days' putting 12k jobs at risk BILL BOOST The energy tariffs that can save you £400 a year - which should YOU choose? A further £11billion will be needed to reach a target of 3 per cent of GDP on military spending by 2030, a study for the Institute for Fiscal Studies found earlier this week. Labour is facing huge pressure to cut the welfare bill that is set to hit £400 billion by the end of the decade. The IMF figures show overall the tax burden in France, Italy and Germany is higher but the rate isn’t accelerating as quickly. It comes as the NIESR think tank warned that higher borrowing costs for government are here to stay – leaving the UK exposed. They say long-term yields are likely to stay at 5 per cent even if the conflict in the Middle East were to ease. Advertisement David Aikman, NIESR Director, said: “The UK’s fiscal position is not the dominant driver of this year’s rise in yields, but high debt and weak growth leave the UK highly exposed to global shocks of this kind.” Meanwhile, Mr Healey is warned to resist spending splurges after the IMF told him to “stay the course” on fixing the nation’s finances. The Chancellor has been told to shy away from temptation on public sector pay or blanket energy help and stick with plans to shrink the national debt. He faces pressure to bring in a generous support package for rising bills this winter – but the IMF say any aid must be targeted. It comes as the Chancellor is expected to rule out hiking capital gains tax to the same rate as income tax to avoid driving away investors from the UK. Advertisement Dr Valentin Boboc, from the Institute of Economic Affairs, said the message from the IMF gives Mr Healey political cover to “resist making commitments”. He said that these include public sector pay settlements or blanket energy subsidies. He added: “The Chancellor should also resist the temptation to spend any additional revenues from stronger-than-expected growth. “Instead, he must keep a healthier buffer against future shocks and aiming to bring forward a budget surplus as early as possible.” It comes after Silvana Tenreyro, the IMF’s chief economist, said the UK stands out among the G7 for plans to bring the public finances under control and start shrinking the national debt. Advertisement She said the UK needs to “stay the course” on its current trajectory. But Healey is under pressure to announce a big energy support package as average energy costs go up by £276 at the start of next year. The IMF in their latest study say any help must be temporary and targeted and unwound as soon as possible. Their forecast for the UK is for economic growth at 1.3 per cent this year before it goes into reverse next year at 1.2 per cent. RECOMMENDED STORIES But Tory leader Kemi Badenoch said the public won’t get “very much comfort” from the findings. Advertisement She said: “The thing that worries me the most is that people are still telling me they are struggling.” Comment now