Middle-class UK households face being £8,000 worse off in January due to a raft of tax changes. Middle-class families face an £8,000 increase in their tax bills in 2025, analysis by The Telegraph newspaper in the UK has found.
Households will pay thousands more in taxes from their children’s education to council tax. The Institute for Fiscal Studies (IFS) warned that with the tax burden “rising to levels that we haven’t previously seen in this country” it is inevitable that families will feel under pressure.
Andrew Griffith, the shadow business secretary, said: “This level of tax raid is completely unacceptable and fails to understand what it’s like to try and bring up a family to a reasonable standard. This Government is completely out of touch with middle Britain.”
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He said that Labour’s policies so far have led to “one of the biggest transfers from the aspirant class to the public sector that anyone has ever seen”, adding: “It sends out a shocking signal to anyone who is trying to do the right thing by themselves and their family to try and get on in life.
“We are heading for a January of discontent. The best New Year present that Rachel Reeves could give is to change and change tack quickly.” A middle-class family with one child attending a private school would be hit by an extra £7,730 of taxation next year.
Carl Emmerson, the deputy director of the Institute for Fiscal Studies, said: “With the UK tax burden rising to levels that we haven’t previously seen in this country it is no surprise that people will feel squeezed. What remains to be seen is how well they feel the money is being spent and how much those households benefit from any improvement in public services.”
John O’Connell, the chief executive of the TaxPayers’ Alliance, said: “This is a grim reminder of the way in which the tax system squeezes the middle classes at every opportunity. And despite coming to power complaining about the tax burden, this Labour government has decided to betray the public and double down on this shocking raid of household finances.
“Starmer needs to urgently recognise that without significant tax cuts he will bear full responsibility for the continuing economic misery.”