Labour reveals tax data showing UK economic growth ‘only helps top 1%’
Party cites HMRC figures showing bottom 90% of taxpayers share less post-tax income but top 300,000 have more.
Labour released figures that show the return of economic growth has overwhelmingly benefited the top 1% of earners.
The disclosure of the findings from HM Revenue and Customs precedes the announcement of employment and earnings statistics on Wednesday which are expected to reveal a buoyant economy.
Over the past year, the share of national post-tax income of the top 1% of taxpayers – just 300,000 people – has risen from 8.2% in 2012-13 to 9.8 % in 2013-14. Over the same period, the bottom 90% – a total of 27 million taxpayers – have seen their share of post-tax income fall from 71.3% to 70.4%, according to estimates contained in the latest Income Tax Liabilities Statistics published by HMRC. They cover the year when GDP growth returned and the top rate of income tax on earnings above £150,000 was reduced from 50% to 45%.
Labour will use the figures to argue that there has been no recovery for middle Britain. Chris Leslie, shadow chief secretary to the Treasury, said: “David Cameron and George Osborne are trying to claim the cost-of-living crisis is over, but these official figures expose what’s really happening under the Tories. While the top 1% of taxpayers have seen their share of income after tax go up, the bottom 90% on middle and lower incomes have seen theirs fall.