UK tax revenues rise by £85bn as Covid relief comes to an end

Total revenue from taxes across the UK rebounded to £775.6 billion over the year to March 2022

The withdrawal of UK tax relief tied to the pandemic has greatly increased government revenues. PA
Beta V.1.0 - Powered by automated translation

UK tax revenues rose by £85.1 billion ($103.3 billion) over the last financial year, figures from the Organisation for Economic Co-operation and Development (OECD) show.

Total revenue from taxes across the UK rebounded to £775.6 billion over the year to March 2022, from £690.5 billion a year earlier, the global economic body found.

The increase in revenue is due to the phased withdrawal of tax relief for households and businesses, which had been introduced during the pandemic.

Tax revenues were also £225.2 billion higher than a decade ago, about a 41 per cent increase, the OECD's analysis of annual statistics showed.

Another analysis, from real estate adviser the Altus Group, showed an £8.3 billion increase in total tax receipts from property alone.

In the UK, property taxes include all receipts from council tax, business rates, stamp duty land tax and land and building transaction tax in Scotland.

UK's finance minister says he is focused on bringing down inflation as economy shrinks - video

Altus said taxes on property increased by 10.4 per cent to £88.4 billion in the UK for the 2021-2022 financial year.

Property taxes accounted for 11.4 per cent of all taxes collected in the UK, the analysis says.

Recently appointed Chancellor Jeremy Hunt announced tax increases and spending reductions as part of the autumn budget in an effort to address the UK’s fiscal gap.

“Despite a manifesto pledge to lower the burden ahead of the 2019 general election, and the welcomed measures within the autumn statement, business rates receipts across the UK are still set to rise by £1.8 billion from April 1 for 2023-2024 with a further unconscionable £4.9 billion jump the year after," said Robert Hayton, UK president at Altus.

A Treasury spokesman said: “Our priority is to restore economic stability in the fairest way possible," a Treasury spokesman said.

"Which is why we have protected the most vulnerable and those with the broadest shoulders — from businesses to individuals — will bear more of the burden to strengthen public finances."

Updated: December 19, 2022, 12:01 AM
EDITOR'S PICKS
NEWSLETTERS