How a lot tax cash does the UK authorities increase and spend? | EUROtoday

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The subsequent two largest earners are VAT, which is paid on many purchases, and National Insurance (NI), which is one other tax levied on folks’s earnings.

The OBR has forecast that VAT will increase £203 billion in 2024/25.

However, the federal government mentioned it anticipated to lift, exterior £2.2bn much less from NI this yr – about £168bn – after the speed of National Insurance was lower from 12% to 10% in January.

The tax classes described as “other” – together with capital positive aspects tax, stamp responsibility and car excise responsibility – are anticipated to lift £115 billion on this tax yr, in accordance with the OBR.

The OBR mentioned, exterior the general degree of tax as a proportion of the scale of the financial system would rise in every of the following 5 years to a post-war excessive of 38% of GDP.

Some sources of cash for the federal government do not come from taxation, corresponding to pupil mortgage repayments, that are included within the “other non-taxes” class.