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Uk Tax Grab Now Even Larger Than Germany’s

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UK tax grab now even larger than Germany’s

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BRITAIN’S tax burden will surge ahead of Germany’s for the first time in a generation this year. It signals the end of an era for the UK as it decisively turns its back on economic liberalism, a report reveals this weekend.

The news, which confirms that Chancellor Gordon Brown has Europeanised the British economy by stealth through a massive programme of extra public spending and higher taxes, was condemned by top City of London economists this weekend. They said higher taxes will lead to an inevitable collapse in Britain’s economic performance, a rise in unemployment and a decline in foreign direct investment.

The UK fiscal burden – mainly taxes but also fees and other government income – will hit 42.4% of gross domestic product (GDP) this year, according to an analysis of Organisation for Economic Cooperation and Development figures published this weekend by Bank of America. By contrast, the fiscal burden in Germany will fall to 42.1% of GDP, less than Britain’s for the first time in recent history. Britain will also outspend Germany from next year, the OECD figures also show. In 2007, German government expenditure will fall to 45% of GDP, while British public spending will hit a new high of 45.7% of GDP.

Holger Schmieding, an economist at Bank of America, said: “Anybody who believes that Germany is a high-tax, big government country and that Britain is lean and low-tax may want to look at the figures. The great convergence between Britain and the Continent has been a major theme. As Britain squanders some of its post-Thatcher advantage and the Continent embraces some reforms, the two sides of the Channel are becoming much more similar again.â€

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So, have I got this right?

Higher taxes and probably going higher, means more disposable income for servicing mortgage debt leading to higher property prices.

Yup got that.

Next lesson?

Edit, this reply now out of context because post above extolling the joys of ever rising HPI and the heinous nature of STRs has been vaped.

Edited by Mushroom

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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