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Labour's Tax Plans Could Hit £1.4 Trillion by 2031

3/4/2026

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Story summary
  • Office for Budget Responsibility (OBR) projects Labour's tax policies push the tax burden to £1.4 trillion by 2030-31.
  • OBR says this burden will be 38.5% of GDP, surpassing records.
  • OBR forecasts one million pensioners will pay income tax, including 600,000 by 2026-27.
  • Critics, including the Liberal Democrats, say these stealth taxes unfairly impact poorer pensioners.
  • OBR warns higher taxes could distort activity and unemployment could reach 5.33% in 2026.