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.”