UK households face £800 tax rise from July 'no matter who wins election'

Tax rises of £800 a year are coming whoever wins the UK election, a thinktank has found. Neither Labour nor Tories have committed to axing already announced rises, the Resolution Foundation has urgently warned voters ahead of July 4.

The Resolution Foundation has warned that already announced measures will increase the total tax take by about £23bn a year by 2028-29. Adam Corlett, the principal economist at the Resolution Foundation, said: “History tells us that tax rises often come after general elections – and it is already very clear that there is enormous strain on public services – though this will be made harder if the parties continue to box themselves in on tax changes.”

The study found that after the past eight elections, the first two fiscal events have introduced new tax policies that raised taxes by an average of £21bn a year. It warned: "Thanks to the Income Tax personal allowance increases of the 2010s and the most recent Parliament’s big National Insurance cuts, personal taxes are now historically low in many ways.

READ MORE Six unanswered questions from Dr Michael Mosley death - from backpack to 'stumble'

"If effective tax rates had remained at their 2010 level, the typical employee in 2024 would be paying £1,600 more Income Tax and National Insurance. But those on higher incomes have tended to see a rise in effective tax rates over the past fifteen years."

It went on: "Although some material differences in tax policies have emerged during the general election campaign, these are smaller than the set of tax rises for the next parliament that have already been announced by the Government. These will amount to a net tax rise of around £23 billion a year by 2028-29 – or around £800 per household on average."

And it added: "However, the backdrop of big tax rises in the last parliament, £23 billion of post-election tax rises already announced, and both main parties explicitly committing to not raising the key taxes, could narrow the room for manoeuvre when it comes to announcing any further tax rises."