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Personal statements will tell taxpayers where their money goes

In tomorrow’s Budget Chancellor George Osborne will reveal plans for income taxpayers to receive a detailed breakdown of what they pay and how Government spends the revenue.

According to the BBC, the statements will be introduced in 2014 and will set out how much people pay in direct taxation such as income tax and national insurance as well as what proportion is used for education, health, welfare and national debt repayments.

For example, someone earning just over £25,000 would pay £5,700 in direct taxes. Of that, more than £1,900 would go on welfare and pension payments, nearly £1,000 on health and £750 on education and £360, or 6 per cent, would go on national debt repayments.

The idea was first floated by Conservative MP Ben Gummer, son of Aifa chairman Lord Deben. In January, Gummer told Money Marketing there is far too much obscurity in the tax system.

He said: “Throwing into sharp relief the reality of how tax take is actually spent will make it much clearer and shift public debate.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I bet it will not show how much of my taxes go on;

    Public Sector Pensions
    EU Contributions
    Overseas Wars
    Council Non-jobs such as bin inspectors, climate officers, all manner of out reachers, etc etc
    Benefit payments to the fit and healthy
    Human rights lawyers
    etc, etc, etc

  2. Perhaps HMRC should concentrate on collecting tax that is due (are you listening Mr Hartnett) and making sure that individual tax codes are correctly calculated instead of wasting time and manpower on what is obviously a bullshit excercise

  3. I hope they are not going to send them to us individually and spend millions doing it, if they do I hope that they include the £200 cost of the statement in the statement……….

    Re Anonymous at 9.09, now that would be a statement I would like to see!!!!!!! ( On second thoughts, far too depressing when I have a £9000 Higher Education fee to start funding this year.

  4. What a waste of public money.

  5. A corresponding statement from the FSA, FSCS and MAS detailing how all our levies are spent might make for interesting reading too ~ salaries, bonuses, pension contributions, office rents and rates, stationery, hospitality, expenses, bail-outs for clients of failed providers, consultation exercises, IT, regulatory bulletins, recruitment, severance packages, RDR implementation…………the list would be long. And, of course, completely unchallengeable.

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