Every taxpayer is to receive a personal statement spelling out exactly how much of their income is paid to the state and what it is being spent on. It was an idea put forward in a Private Members' Bill by the Ipswich Conservative MP Ben Gummer.
Chancellor George Osborne is expected to use his Budget tomorrow to announce plans to issue annual personal tax statements from 2014-15. The statements are said to be part of the Government's drive to make the tax system simpler and more transparent.A Treasury source said: "It is quite right that people know how much tax they pay and what it is spent on."
Ben Gummer, who was elected in 2010, outlined the tax statement idea on Anglia Late Edition in January.
Specimen statements prepared by the Treasury show someone on £25,200 a year sees £5,702.12 of their income go to the Exchequer in direct taxation.
This is how the tax is spent:
- Welfare - £1,900.71
- Health - £992.91
- Education - £743.26
- Paying of interest on national debt - £363.12
- Defence - £329.08
- Police - £153.19
- Overseas aid - £52.74
- European Union - £28.37