Taxpayers shell out record amount on government spending
British taxpayers spent a record amount this year funding government spending, a top think tank has calculated.
Workers have spent more than 60 per cent of 2023 with their incomes going towards paying off the government’s spending and borrowing, according to the Adam Smith Institute (ASI).
Today, August 15, marks, what it has dubbed as ‘Cost of Government Day’ – from which point the average taxpayers get to keep their income solely for themselves until the end of the year.
But at 227 days into 2023, this year’s is the latest date on record, even when compared to spending during the Covid-19 pandemic, the ASI said.
Research director Maxwell Marlow warned: “This is an unsustainable situation, especially as poor private sector investment continues to cripple the long-run health of the economy.”
Last year’s cost of government day came a month earlier on July 10, 2022.
Over £901.8bn was paid to HMT from employees’ wage packets this year, which amounted to 46.25 per cent of net national income, ASI figures claimed.
“We need urgent fiscal reform,” Marlow said. “Taxes must be cut, regulations must be slashed, and we must free-up our sclerotic planning system to allow for growth and extensive housebuilding to give young people a fairer chance.”
The government has been approached for comment.