Lower taxes raise more revenue, May told

BRITAIN’S tax burden is at its highest level for almost half a century, according to a report, as campaigners warn Theresa May not to ask the public for more money to fund the NHS.

The Taxpayers’ Alliance said taxes had hit poorer households the hardest and the bottom 10 per cent of earners paid half their income in taxes. It follows reports that Gavin Williamson, the Defence Secretary, called on the Prime Minister to cut taxes instead of raising them to give people more control over their money.

Research by the alliance found tax levels in the UK had reached 34.3 per cent of GDP – a 49-year high.

Experts warned ministers should not look at raising taxes to pay for promises on social care and the NHS because “squeezed” families were already struggling.

The report also found that increasing taxes did not necessarily mean more money for the Treasury. Receipts had risen 37 per cent in real terms after the rate came down from 50 per cent 45 per cent, it found, while corporation tax receipts increased by 25 per cent in real terms after the top rate reduced from 28 per cent to 19 per cent last year.