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York Earning More Despite the Recession


5:08pm 6th August 2012
(Updated 6:49pm 6th August 2012)

Residents of most towns and cities have seen their tax bills increase since the start of the financial crisis, with those in York paying 31% more, according to a new study.

Research by accounting group UHY Hacker Young among residents of 50 towns and cities showed that 42 saw average bills rise.

Taxpayers in York saw the biggest increase, paying 31% more tax in 2009/10 than in 2006/7, with Winchester and Aberdeen just behind, said the report.

In contrast, people in St Albans, Salisbury, Durham, Londonderry, Lisburn, Stoke-on-Trent and Peterborough saw their incomes rise while taxes fell, it was found.

Rob Durrant-Walker, of UHY Hacker Young, said:

"For the vast majority of taxpayers the effective tax rate fell during the financial crisis.

"The tax bill for someone on a static income of #20,000 will have decreased by about 11% over the last three years. Of course, that doesn't reflect the increase in VAT and other indirect taxes.''

"These statistics also show survivor bias of the recession, showing those still working, or self employed or pensioners who are earning enough to pay tax.''

Matthew Sinclair, director of the TaxPayers' Alliance pressure group, said:

"High taxes are making life a lot harder for many families struggling to make ends meet in the recession, often now relying on a single income when they would have had two earners before.

"Indirect taxes have also been hiked, from Value Added Tax to Stamp Duty, which means limited household incomes just can't go as far. With business taxes depressing the number of jobs and reducing wages as well, the tax system is putting serious pressure on living standards from every angle.

"The Government needs to act and cut the tax burden or Britain's current dismal economic performance will continue and many people will be pushed over the edge.''

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