Autumn Budget: tax
Households face £3,000 tax hit says think tank
Number crunching: Rishi Sunak has promised lower taxes
Households will be paying £3,000 more in taxes by 2027 as a result of policies pursued since Boris Johnson became Prime Minister, according to a think tank.
Analysis by the Resolution Foundation shows that the Chancellor has set the stage for a new high tax economy – rather than the high wage, low tax one favoured by many Conservative MPs.
The Foundation said that despite a spending spree announced in the Budget, real wages would fall again next year and that the UK is “still in the midst of its weakest decade for pay growth since the 1930s”.
Faster than expected growth gave Rishi Sunak room to boost spending across government departments by £150 billion.
However, the Resolution Foundation said that rising inflation would erode wage growth compounded by rising energy prices.
The think tank’s analysis showed that in 2026/27 tax as a share of the economy will be at its highest level since 1950 – £3,000 a household higher since 2019 when Mr Johnson moved into Downing Street.