Survey by global economic forum shows ‘tax wedge’ in Britain increased to 32.4% of income in 2025
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Taxes on workers in Britain rose at the fastest rate among the world’s richest economies last year, according to the Organisation for Economic Cooperation and Development.
With Labour under pressure on the economy amid the Iran war, the OECD said a key measure of the total tax paid by workers and their employers rose by the most in the 38-member club of rich nations in 2025.
In its annual study of taxes on work across the developed world, the Paris-based organisation said Britain’s “tax wedge” – which estimates total taxes on labour paid by employees and employers, minus cash benefits received by working households – increased by 2.45 percentage points last year.
