John Healey's Budget increased taxes by £8.6 billion, a figure 75% above the average rise since 2010, according to accountancy group UHY Hacker Young. The increase lifts the tax burden to its highest ever level.
The Budget followed two earlier Labour Budgets delivered by Rachel Reeves, who raised taxes by £40 billion in 2024 and a further £26 billion in 2025. Both of those Budgets were marked by chaos and confusion, with leaks, floated and reversed tax hikes, and a heavy impact on taxpayers.
Tax Rise Above Historical Average
UHY Hacker Young calculates that Budgets since 2010 have increased taxes by an average of £4.9 billion, including the tax increases introduced by former Tory chancellor Jeremy Hunt after Covid and the Liz Truss crisis. Yesterday's £8.6 billion rise was 75% more than that average, according to the firm.
Ordinary people faced 'just' £2.3 billion in extra taxes, much of it from changes to people's savings. Businesses faced additional tax increases, despite government claims of support.
Impact on Businesses and Consumers
Brian Carey, tax partner at UHY Hacker Young, said: "Recent Budgets have significantly increased the cost of doing business, and this one is no exception."
The article notes that higher taxes on companies may lead to price rises, fewer staff hires, or lower wages, with some businesses potentially going bust and more jobs lost. It also states that the £100 off energy bills will not reverse the impact of higher taxes and the cost-of-living crisis.
