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Britain's Tax Wedge Hits Highest Since WWII Amid Rising Unemployment

4/23/2026

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Summary

Story summary

The OECD reports Britain's tax wedge rose by 2.45 percentage points last year.
Unemployment has risen since Labour took power.
The rise is attributed to Labour's budget changes and fiscal drag, with taxes at their highest since World War II.
Britain's tax rate stands at 32.4%, below the OECD average.
Experts warn that the ongoing Iran war could worsen the UK's economic conditions.

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Story summary

The OECD reports Britain's tax wedge rose by 2.45 percentage points last year.
Unemployment has risen since Labour took power.
The rise is attributed to Labour's budget changes and fiscal drag, with taxes at their highest since World War II.
Britain's tax rate stands at 32.4%, below the OECD average.
Experts warn that the ongoing Iran war could worsen the UK's economic conditions.