Rachel Reeves’s Tax Burden May Deter Workers From Trying to Earn More
4th March 2026
Rachel Reeves has increased taxes to the highest level in postwar history in a move that risks damaging economic growth and disincentivising people from trying to earn more money, the official forecaster has said.
The Office for Budget Responsibility (OBR) said taxes would hit 38 per cent of national income in 2030-31, a postwar record. It said the level of taxation could “distort or constrain economic activity by more than expected”.
The spring forecast highlighted soaring tax revenues after the chancellor’s decisions to increase the employers’ rate of national insurance and freeze income tax thresholds. It said that revenues from the two taxes would rise from £480 billion in 2025-26 to £600 billion in 2030-31.
The problem with socialism is that eventually you run out of other people’s money.