The level of UK taxation across the economy has risen to its highest rate on record, according to new data from the Organization for Economic Co-operation and Development.
It came as separate figures showed the UK now also faces the highest level of estate taxes across the developed world.
The Organization for Economic Co-operation and Development (OECD) annual revenue statistics update found that the total tax-to-GDP ratio across the UK reached 35.3% for the 2022/23 financial year – the highest since OECD records began in 2000.
This represents an increase of 0.9 percentage points from the record 34.3% the previous year.
It ranks the UK as having the 16th highest rate among 38 OECD countries, and is 1.3 percentage points higher than the group average of 34%, in terms of tax competitiveness.
Separately, new analysis by commercial property firm Altus Group revealed that the UK has the highest combined rate of property tax across 38 OECD countries.
It found that the UK has a 4% property tax to GDP ratio.
This compares to an average of 1.5% across the EU and an average of 2.9% versus the G7 advanced economies, the research said.
In the UK, property taxes include all tax receipts from Council Tax, business rates, SDLT (Stamp Duty Land Tax), and LBTT (Land and Building Transaction Tax) in Scotland.
Alex Probyn, head of estate tax at Altus Group, said: “The UK stands out across the developed world as having higher levels of revenue from estate taxes.
“Our clients are already telling us that the level of business rates tax is a disincentive to investment and the effective tax rate of 54.6% next year on commercial properties will do nothing to dispel that.”
The Office for Budget Responsibility has also forecast a further rise in UK property taxes, with business rates rising by £3.2 billion from April 1 due to an inflation-linked rise, while council tax revenues are set to grow by £2.3 billion.
Labor seized on this data to say it was the result of 13 years of “Conservative economic failure”.
Shadow Finance Minister to the Treasury James Murray said: “Workers and businesses are being forced to pay the price for their failure in the economy – with 25 Tory tax rises in this Parliament alone.”
“Only Labor will grow our economy, replace business rates with a fairer system, and make working people better off.”
A Treasury spokesman said: “The UK tax system is highly competitive, with the lowest headline corporate tax rate and the most generous capital allowances in the OECD, while our taxes relative to GDP remain mid-pack in the G7 in Year 2028.” 29- Less than France, Italy and Germany.
“Our Autumn Statement delivers a tax cut of £10bn a year for businesses by making full outlay permanent, and a tax cut of more than £9bn a year for employees and the self-employed, worth more than £450 for the average worker on £35,400.”