Impact of austerity measures to tax payers

Benjamin Nunn made this Freedom of Information request to HM Treasury Automatic anti-spam measures are in place for this older request. Please let us know if a further response is expected or if you are having trouble responding.

HM Treasury did not have the information requested.

Dear HM Treasury,

I originally made this request:

What I was asking for was the long term benefit of “low tax” Britain, created as a result of austerity.

What I was sent was the wrong analysis, covering two years. I’ve repositioned my request and sent to 10 Downing Street and the treasurer. But for legal and the purposes of full clarity, I’d like to restate my original request to you.

I would like to know how much tax, including all direct and indirect taxes the average taxpayer made, before austerity measures in 2010 and the current taxes paid by the average tax payer.

For completeness, here is what I sent to the prime minister and treasurer and my local MP. Because no one can tell me how much tax directly and indirectly is paid.

And for instance I include corporate tax as a tax on anything that produces a profit for which anyone in this country has contributed to.

I do give you permission to alter my methodology - but you must tell me any changes when completing it.

Follows original message to Rishi Sunak MP. What I am looking for is for you to complete the average figures for each item listed. Please do let me know what your average is and whether you define a tax payer by household or individual.

Thank you very much


Hi Rishi and Jeremy,

I wondered if you could help me. I was having real difficulty getting the treasury to tell me the effective tax rate of "Joe Bloggs" average man in society, before 2010 and at present.

The reason I ask, is that there are so many other taxes we pay on top, from VAT to fishing licenses. Even where subsidy has been reduced on transport fares, it's still tax to those paying the subsidy. Even corporation tax and bank levies are paid for by us, indirectly.

I thought my effective tax rate, all inclusive, might be 40%-50% of my income. But it may even be higher than that. Meanwhile I think we collect 34.1% in tax and spend 44%. I really want to know who isn't paying their fare share, I'm sure you are concerned about this too.

Obviously as chancellors you will be keeping an eye on us all, and the real taxes we pay. So as HMT was unable to tell me, I wanted to invoke your privileges as current and former chancellors to help me with the maths and complete my freedom of information request.

I attach information from HMRC which demonstrates the collection of all taxes, as HM Treasury couldn't tell me.

I want figures prior to the Conservative budget in 2010. And the latest budget. I'm really curious to know! Also the ONS might be able to help - but it seems different departments use different numbers.

The average household earns £34,000
After INCOME, NICs, taxation and benefits that is £37,600
(Source: BBC)

Now a household is 2.1-2.4 people depending on the area.

I worry about this number as I’m gay and it’s a bit harder to double up. I’m sure other people have their own difficulties too. That means I have to cover everything my partner might help me with.

The average household then pays:
£4,800 in VAT (BBC)
£x in pension contributions
£x in student loans
£1,966 in Council Tax (Band D)
£x in APD
£x in fuel duty
£x in VED
£x in transport charges (which the subsidy plus the decrease in subsidy)
£x in alcohols and tobacco duties
£x in import and export duties
£x in prescription, optical and dental fees
£x in capital, savings, inheritance, stamp duty / tax
£x indirectly through corporation taxes
£x indirectly through levy’s / business rates
£x for passports, driving licences, DBS, identity checks, fishing licenses…. All the certificate type stuff
£x in uniforms for schools or work
£x in compliance costs (energy performance, vehicle changes and repairs, home improvements…)
£x in above inflation price rises for regulated utilities, post….
£x in gambling, landfill, banking levy’s and taxes

Yours faithfully,

Benjamin Nunn

FOI Requests, HM Treasury

Our ref: FOI2023/03232

Dear Benjamin Nunn,

Thank you for your request for information which we are considering under
the terms of the Freedom of Information Act 2000.

This is to confirm receipt of your request and to let you know that it is
receiving attention. If you have any enquiries regarding your request do
not hesitate to contact us.

Please note: HM Treasury has a dedicated email address for the public to
make Freedom of Information requests: [email address]

Yours sincerely

Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ [1]


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FOI Requests, HM Treasury

1 Attachment

Dear Benjamin Nunn

Please find attached a response to your recent FOI request.

Yours sincerely

Information Rights Unit | Correspondence and Information Rights | HM
Treasury, 1 Horse Guards Road, London, SW1A 2HQ [1]


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