Government tax policies are projected to increase the UK's tax burden to a "historical high" of £1.4trn a year by 2030/31, according to the Office for Budget Responsibility. This represents 38.5% of GDP, surpassing previous forecasts. The freeze on income tax thresholds will pull millions into higher tax brackets, generating an estimated £67bn for the Treasury. Anna Leach, chief economist at the Institute of Directors, noted that the rising tax burden could hinder economic growth, saying: "Projected growth has been lowered in the short term as the impact on the labour market and confidence from chaotic policy management, and increased employment costs, weigh more heavily than anticipated."
