UK state spending and tax burden growing faster than most G7 peers

Summarised from 2 outlets · Updated 15 Oct, 00:20 · Archive

British government spending is set to rise by 5.2 percentage points between 2019 and 2031, according to IMF figures.

The International Monetary Fund's latest report on countries' fiscal outlook shows that UK government spending is set to rise by 5.2 percentage points between 2019 and 2031, making the size of the state grow to 43.3 per cent of GDP in 2030 compared with 38.1 per cent before the pandemic in 2020. This is a larger increase than any other G7 nation apart from Germany. The US, France, Italy, Canada and Japan are all projected to increase government spending by a smaller proportion as a share of their economies, though France, Italy and Canada already spend more as a percentage of GDP than the UK currently does.

The IMF forecasts also project that the UK tax burden will grow at the fastest pace among advanced economies. Revenue as a share of GDP will reach about 41.9 per cent by 2031, rising from 38.2 per cent in 2025, following tax increases on businesses and households by the Labour government. The report adds to expectations ahead of Chancellor John Healey's budget, where he must balance spending pressures with a constrained fiscal outlook.

UK state spending and tax burden growing faster than most G7 peers — Image: This is Money

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How it is being reported

Britain is raising taxes at fastest rate in G7, says IMF - as Healey prepares further hikes after ruling out more borrowing to fund Budget giveawaysFigures from the International Monetary Fund (IMF) project that the UK tax burden will rise to 41.9 per cent of gross domestic product (GDP) by the start of the next Parliament.This is Money · 15 Oct, 00:01
UK state growing at faster pace than France after spending splurge and tax hikesThe size of the British state is growing by a larger amount than any other G7 nation apart from Germany since the pandemic in 2020, figures on government spending from the International Monetary Fund have shown. The IMF’s latest report on countries’ fiscal outlook shows that UK government spending is set to rise by 5.2 [...]City AM · 14 Oct, 10:39

In this story: UK · International Monetary Fund · Germany · France · John Healey

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