You are here: Home - Uncategorized -

Plenty of frowns with Gordon Brown on the tax front

Written by:

The main legacy of Gordon Brown’s 10 years as Chancellor has been increased taxes, according to a report compiled by accountants Grant Thornton.

The tax burden on ordinary people has risen by the equivalent of 10p on the basic rate of income tax. The conclusions were published on the eve of Tax Freedom Day, the day of the year when people start working for themselves and not the taxman.

In the ’60s, Tax Freedom Day fell on April 24th, although by the time Brown assumed office in 1997 it was May 27th. Now it has slipped back to June 1st, reflecting the increased tax burden on the majority of UK workers.

A spokesperson for Grant Thornton said: “The Chancellor’s favourite trick of ‘fiscal drag’ is largely to blame – the trick of raising the tax threshold more slowly than earnings are rising. As a result, people end up paying a higher proportion of their income in tax.”

Francesca Lagerberg, an analyst at Grant Thornton, added: “Despite the recent headline announcement to cut income tax by 2p, other changes to the tax system means that he is simply maintaining the status quo.”

But a Treasury spokesperson pointed to the “huge benefits” that Labour has delivered to many workers. “Thanks to the strong economy and record employment, incomes have grown strongly across the population since 1997.”

Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
County Court Judgements soar to 10-year high

The number of County Court Judgements (CCJs) taken out against consumer debtors has reached its highest level for 10 years and is...