Chancellor George Osborne to reveal taxpayers' spending statement

 
Example new HMRC statement An example of how the new style of statement will display the way tax income is spent

Chancellor George Osborne is to set out plans in the Budget to give 20 million people a detailed breakdown of how their taxes are spent.

The plan, to be introduced in 2014, will set out how much people pay in direct taxes such as national insurance and income tax, outlining proportions used for education, health and welfare.

A Treasury source said it was "right" that people knew how taxes were spent.

It is part of attempts by ministers to make the tax system more transparent.

For example, someone earning just over £25,000 would pay £5,700 in direct taxes. Of that, more than £1,900 would go on welfare and pension payments, nearly £1,000 on health and £750 on education.

And £360 - some 6% - would go on national debt repayments.

The statement will not take account of indirect taxes such as VAT and fuel duty, although ministers are planning an online calculator to show people how much of these taxes they are paying too.

In November, Exchequer Secretary David Gauke announced the government's vision for greater tax transparency.

Speaking at the launch event, he said: "At the moment, for a lot of people, the tax line on their payslip is the only time they see just how much they're paying in tax, but the government doesn't think that's good enough.

"We want to make tax more transparent and we want people to be more engaged with their own tax affairs."

John Whiting, from the Chartered Institute of Taxation, welcomed the idea, saying that while HMRC and the government were responsible for running the tax system, people needed to take some responsibility in their own tax position.

"Of course there are lot of issues," he added, "For example, linking systems together, setting up help systems for people to sort out queries, managing confidentiality issues.

"But these should be soluble and shouldn't stop the idea being taken forward."

Where does your tax go?

Salary £15,000 £25,000 £50,000

Source: HM Treasury

Welfare

£812.71

£1,900.71

£4,727.67

Health

£424.55

£992.91

£2,469.68

Education

£317.80

£743.26

£1,848.73

National interest on debt relief

£155.26

£363.12

£903.20

Defence

£140.71

£329.08

£818.52

Police

£65.50

£153.19

£381.04

Overseas aid

£24.26

£56.74

£141.12

European Union

£12.13

£28.37

£70.56

Other

£485.20

£1,134.74

£2,822.48

Tax total

£2,438.12

£5,702.12

£14,183.00

 

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Budget 2012

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  • rate this
    +3

    Comment number 304.

    246. teddy555
    "It will be irrating to see the extent that the outgo will be . I suspect about 30% of it will be benefits !"
    But who put all these extra people out of work and on benefits????
    But even then, the "benefit" money will be spent on things that accrue VAT. even non-VAT rated goods put money in the round and that is taxed etc. etc.

  • rate this
    0

    Comment number 303.

    @Dragonwight

    Why would telling people how much they paid into each basic department be seen as party propaganda?! I think that view is scary, its keeping things quiet to avoid a debate that is propaganda. As is basing your opinion on a policy on who announces that policy.

  • rate this
    +4

    Comment number 302.

    The problem is I already know my taxes are spent unwisely and without value.
    I know that for only a fraction of my car tax gets spent on roads.
    I know tax and NI are the same thing.
    I know I am funding someone smoking & watching Sky all day.
    I know I am funding others undeserved gold plated pensions.

    I just can't do anything about it in this current style of "democracy".
    A change please!

  • rate this
    +5

    Comment number 301.

    Bet George's statement won't tell you what's going out of the back door to companies: e.g. Soft Loans, 'Training' grants, right-offs, PFIs, contracting, etc. etc..

  • rate this
    +1

    Comment number 300.

    i dont want a personal statement...can i opt out please..seeing how much of my hard earned cash is being wasted by these politicians will just get me mad..maybe we need a revolution

  • rate this
    -1

    Comment number 299.

    288. Total Mass retain
    Those with children will get exactly the same benefits in retirement as me yet I have to pay tax without getting anything back during the course of 50 years of working life. Why do other peoples expect me to fund their lifestyle choices? BTW, I been responsible enough to make provision for my own care, I don
    't expect others to fund my lifestyle choices.

  • rate this
    -8

    Comment number 298.

    Great move in my opinion. Yes it will cost a little more, but it will (a) make people feel more attatched to their Britain, inspiring a little national pride by knowing what they are contributing towards, and (b) make people know how much they are contributing to welfare payments, which will make those on it feel that little bit less comfortable when claiming it.

  • rate this
    -1

    Comment number 297.

    We are being and have been lead by the corrupt that abuse their power to line their pockets and those of their freinds and associates. Only yesterday did Cameron announce privatisation of our roads yet large sums of money have already been moved between off-shore / overseas banks accounts as the corruption begins on this little tax-payer rip-off.

  • rate this
    +1

    Comment number 296.

    This is further proof that the tories know the price of everything but the value of nothing. I'm happy to pay £750+ tax for educating the nation's children, not everyone can go to Eton, but I'm not happy to pay one penny for Cameron's elitist train line.

  • rate this
    +4

    Comment number 295.

    Can the government tell us what this exercise will cost us.

  • rate this
    +9

    Comment number 294.

    A good idea generally but it would be best to have categories like 'Welfare and Pensions' broken down into how much is spent on administration and how much in actual welfare and pension payments. This is the positive step towards increasing productivity in society.

  • rate this
    +1

    Comment number 293.

    My first impression is that this is actually a good thing. I do think it's supposed to be divisive, making some people think they're paying back too much into the debt - but I reckon that'll backfire on the government. People will brandish it proudly, saying, "I'm doing my bit!" Poorer people, especially. Then they'll look at all the rich with their tax havens and ask, "What are YOU doing?"

  • rate this
    +24

    Comment number 292.

    The devil is in the detail. It's one thing to get a figure for, say '"Welfare & Pensions" - but that doesn't reveal where each slice of that big chunk of money goes. Some will assume that most of it goes to 'scroungers'. Others will insist that most of it goes to the needy. With no detail, both sets of prejudices will run unchecked.

  • rate this
    +7

    Comment number 291.

    Complete and utter waste of time (and money). The reason we have a breakdown of costs with other goods & suppliers is it allows us to make an informed choice. Do I have a choice to go with a different supplier if I dont like the amount the .gov is spending on xyz??? answer no. Waiting 5 years for a new election is a bit long to wait for a refund.

  • rate this
    +5

    Comment number 290.

    "The plan, to be introduced in 2014, will set out how much people pay... 6% would go on national debt repayments..." BBC.

    Except it will be some way north of 6% by 2014, and should seriously worry anyone who doesn't have a head full of rocks.

  • rate this
    0

    Comment number 289.

    Where's the money going?
    Government Employees

    The council
    The Education sector
    The Health sector

    The Civil service: (read and weep at this monster)
    http://www.civilservice.gov.uk/recruitment/departments-and-accredited-ndpbs

    The Army
    The Air force
    The Navy

    The welfare folk

    PLUS:
    They all get index linked pensions, every single one of them

    No wonder this country is bust

  • rate this
    +6

    Comment number 288.

    "Name number 6
    I'm fully awake thank you, thats how I know I'm paying a bloody fortune for other peoples kids!"

    You mean the kids that will, when they are adults, be providing essential services you need (from emptying bins to medical staff to entrpreneurs), paying taxes and funding your retirement. Who do you think will be wiping your bodily fluids off you in a care home when you can't?

  • rate this
    +25

    Comment number 287.

    I wonder which friend or associate of the Government will get the multi-million £ contract to draw up this report? The UK public no longer have any say in how tax is spent. The eye-watering wasteage corrupt, immoral scams that go on with our taxation infuriates me deeply. High-speed rail link costing 10's of £Billions just so the wealthy can get to their destination 20 minutes quicker - VILE.

  • rate this
    +23

    Comment number 286.

    This is particularly two faced as it is this govt that wont publish the NHS risk register for fear it will be misconstrued and yet they are happy to publish figures that they know will be. Its a blatant infringement of the rules, they have been warned before about the misuse of stats by the UK national stats office.You are absolutely not allowed to use the civil service for party propaganda.

  • rate this
    +5

    Comment number 285.

    You can already find out this information easily by looking on the internet. It is a waste of taxpayer's money to produce individual statements. The money used to produce these would be better spent on employing e.g nurses. It is being used to distract people from other bad news in the Budget at best.

 

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