UK SETS 'RECORD': TAXES RISING FASTER THAN IN ANY G7 COUNTRY / БРИТАНИЯ УСТАНАВЛИВАЕТ «РЕКОРД»: НАЛОГИ РАСТУТ БЫСТРЕЕ, ЧЕМ ВО ВСЕМ G7

 

Author: Vivien Yor

Date: April 16, 2026

 

 

 

INTRODUCTION

 

The United Kingdom is currently experiencing an unprecedented rise in the tax burden, placing the country at the forefront of fiscal tightening among developed economies worldwide.

 

According to IMF forecasts, between 2024 and 2031, the overall tax-to-GDP ratio in the UK will increase by 4.5 percentage points — the fastest pace seen in any G7 nation.

 

 

 

FIGURES AND COMPARISONS

 

The dynamics of changes in the tax burden across leading economies look as follows:

 

- 🇬🇧 United Kingdom: +4.5 p.p.

- 🇫🇷 France: +1.7 p.p.

- 🇩🇪 Germany: +1.2 p.p.

- 🇯🇵 Japan: -0.2 p.p. (decrease)

- 🇨🇦 Canada: -0.5 p.p. (decrease)

 

The rate of tax growth in Britain is nearly three times higher than in France and almost four times higher than in Germany.

 

 

 

HISTORIC MAXIMUM

 

By 2030, the tax share of UK GDP is projected to reach 42.1% — the highest level in the country’s peacetime history. For comparison, this figure stood at 37.6% in 2024.

 

Experts calculate that this increase is equivalent to an additional £130 billion in tax revenues annually — or roughly £4,500 per household across the country.

 

 

 

MEASURES AND MECHANISMS

 

The government is increasing the burden through several key channels:

 

1. Higher National Insurance contributions for employers (rising from 13.8% to 15% as of April 2025), generating an additional £25 billion per year.

2. Increased Capital Gains Tax: The lower rate has risen from 10% to 18%, and the higher rate from 20% to 24%.

3. Freezing tax thresholds amid inflation (often referred to as "fiscal drag"). As salaries rise but brackets remain unchanged, people automatically move into higher tax bands.

4. Increases in property taxes, inheritance tax, duties on tobacco, alcohol, and other activities.

 

 

 

CONSEQUENCES: RISKS TO GROWTH AND LIVING STANDARDS

 

The government justifies these measures as necessary to restore public services, fund infrastructure projects, and close the budget deficit.

 

However, analysts, including experts from the IMF and the UK’s Office for Budget Responsibility (OBR), warn of serious risks:

 

- Suppression of economic growth: High taxes reduce incentives for work, investment, and entrepreneurship.

- Decline in real incomes: Additional costs for businesses are partially passed on to workers in the form of slower wage growth and to consumers through higher prices.

- Worsening investment climate: According to estimates, the UK tax system is becoming one of the least attractive for business among developed nations.

 

 

 

CONCLUSION

 

Britain is entering a period of the most dramatic tax expansion in decades. The question is not only whether it will be possible to close the budget gaps, but also how this will affect the economy's competitiveness and people's quality of life in the long term.

 

For now, the country firmly holds the title of the world leader in the pace of fiscal tightening — and this is certainly not a "record" to be proud of.

 

 

 

© Vivien Yor. All rights reserved.

 

🔑 Keywords

 

English:

UK, taxes, tax burden, tax increase, IMF, G7, fiscal policy, GDP, National Insurance, capital gains, inflation, economic growth

Русский

 ВВП, номинальный ВВП, паритет покупательной способности, ППС, рейтинг экономик, МВФ, Россия, рыночная стоимость, глобальная экономика