The UK's tax burden is set to increase from 37.6% to 42.1% of national income by 2031, according to the International Monetary Fund (IMF). This rise, amounting to an additional £130bn annually or £4,500 per household, is the fastest in the developed world. While the tax burden in the UK is due to rise by 4.5 percentage points, it will go up by 1.7 percentage points in France, 1.2 in Germany, 0.9 in the US and 0.6 in Italy. Canada and Japan, meanwhile, are set to see their tax burdens fall. Reflecting on the report, Shadow Chancellor Sir Mel Stride criticised the Chancellor, saying: "Rachel Reeves said she wouldn't tax working people but she's delivering the fastest rise in the tax burden of any major economy." This, he said, "is reckless and totally unsustainable for our economy." The IMF also predicts the UK economy will grow by just 0.8% this year, with this 0.5 percentage points lower than it predicted in January.
